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UNITED OVERSEAS BANK (THAI)
PUBLIC COMPANY LIMITED
Annual Report 2014
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED Annual Report 2014
United Overseas Bank (Thai) Public Company Limited
Head Office
191 South Sathon Road,
Sathon, Bangkok 10120
Thailand
Phone: (66) 2343 3000
Fax: (66) 2287 2973-4
www.UOB.co.th
Wait at Terminal 21
Hong Sek Chern
Contents
02
03
04
06
06
07
08
14
15
107
116
123
124
125
126
129
137
Company Profile
Financial Highlights
Chairman's Statement
Board of Directors
Senior Management Team
Organisation Structure
Management Discussion and Analysis 2014
Independent Auditor’s Report
Financial Statements and
Notes to Consolidated Financial Statements
Other Information
Risk Management
Report of the Audit Committee
Opinion of the Audit Committee
on the Bank's Internal Control System
Report of the Nomination and
Compensation Committee
Corporate Governance
Branch Network
Company Information
Wait at Terminal 21
by Hong Sek Chern
Chinese ink on rice paper
Ms Hong Sek Chern’s Wait at Terminal 21 is the design inspiration for the cover of
this year’s UOB Group Annual Report. The painting received the Gold Award for
the Established Artist category in the 2014 UOB Painting of the Year (Singapore)
Competition. It is symbolic of the beliefs and actions that can bind people and
shape their future.
Ms Hong was inspired by the determination, persistence and resilience of the
Thai people and sought to capture these qualities in her painting. She portrayed
a democracy movement at Bangkok’s Terminal 21 shopping mall, employing her
signature style which is a complex interplay of architectural blocks and lines.
The UOB Painting of the Year Competition, now in its 33rd year, promotes
awareness and appreciation of art and challenges artists to produce works that
inspire audiences across Southeast Asia.
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
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1
Company Profile
United Overseas Bank (Thai) Public Company Limited (UOB
(Thai)) is a fully-licensed commercial bank. With its network
of 154 branches, 363 ATMs and 10 foreign exchange kiosks
nationwide (as at 31 December 2014), UOB (Thai) offers
consumer and corporate customers a comprehensive suite of
quality products and services to meet their financial objectives
and needs. To complement its commercial banking business,
UOB (Thai) has two subsidiaries providing futures broking and
debt collection services.
UOB (Thai) is 99.66 per cent owned by Singapore-based United
Overseas Bank Limited (UOB), which has a global network of
more than 500 offices in 19 countries and territories in Asia
Pacific, Western Europe and North America.
A regional bank rooted in Thailand, UOB (Thai) provides
customers with financial expertise and connectivity across
Asia. It offers innovative financial solutions, quality products
and excellent service through understanding and identifying the
needs of its customers.
UOB (Thai) is rated among the top banks in Thailand by Moody’s
Investors Service, Fitch Ratings, and Standard & Poor’s:
Moody’s Investors Service:
International Ratings
Long-Term
Short-Term
Financial Strength
Fitch Ratings:
International Ratings
National Ratings
Standard & Poor’s:
International Ratings
ASEAN Regional Ratings
2
Baa1
Prime-2
D
Long-Term
Short-Term
Viability
Support
Long-term
Short-term
AF2
bb+
1
AAA(tha)
F1+(tha)
Long-term
Short-term
Long-term
Short-term
BBB+
A2
axA+
axA-1
| UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Financial Highlights
Audited Financial Statements
Financial Position (Million Baht)
Assets
Loans
Allowance for doubtful accounts
Deposits
Liabilities
Shareholders' equity
Capital funds
Earnings Performance (Million Baht)
Net interest income
Non-interest income
Bad debt, doubtful accounts and impairment loss
Net profit before tax
Net profit after tax
Ratios (%)
Net interest income to average assets
Return on average assets
Return on average equity
Earnings per share - basic (Baht)
Book value per share (Baht)
Capital adequacy ratio
2014
2013
397,862
266,574
8,011
268,477
357,908
39,774
43,707
407,863
255,427
6,931
234,641
370,570
37,293
39,011
11,170
3,043
2,633
3,094
2,485
10,331
2,767
2,662
3,337
2,947
2.77
0.62
6.45
1.00
16.00
18.04
2.70
0.77
8.22
1.19
15.00
15.92
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
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Chairman’s Statement
Our guiding principle has always
been to do what is right for our
customers, at all times.
2014 Review
Thailand’s consumption, investment and tourism were impacted
by political uncertainty that began in late 2013 and continued into
2014. Demand for the country’s exports was subdued and
continued to be weighed down by economic weakness in its main
export markets. The political situation improved in May 2014 and
the current government subsequently approved measures to revive
the economy by boosting spending and to renew investor interest.
Overall, Thailand’s economy grew 0.7 per cent in 2014.
2014 Bank Performance
Against the operating environment, UOB (Thai)’s net profit after tax
dropped to Baht 2.5 billion from Baht 2.9 billion in 2013. Total
income increased 9 per cent to Baht 14.2 billion, mainly attributable
to loans growth.
The Bank saw total loans increase by 4 per cent to
Baht 266.6 billion, primarily due to an increase in housing loans,
and achieved a healthy growth in total deposits by 14 per cent to
Baht 268.5 billion. This gave the Bank a loans to deposits ratio of
99.3 per cent at year’s end.
Asset quality remained healthy with non-performing loans ratio at
2.3 per cent, which was the same as industry average. The Bank
has set aside a provision of Baht 2.6 billion in view of economic
volatility abroad and at home.
4
| UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Corporate Developments
We continued to invest in new product and service capabilities.
In the year under review, we completed the upgrading of our
Personal Internet Banking platform to offer customers a better
online banking experience. Our Transaction Banking team’s
success in serving customers with cross-border needs through
the UOB Group’s extensive branch network across Asia and strong
relationships with correspondent banks, won UOB (Thai) the Best
Service Provider award in Trade Finance, Thailand, from The Asset.
2015 Outlook
There is cause for optimism in 2015. Business sentiment has
recovered with the return of political stability. Domestic consumption
has increased on the back of rising real wages and low
unemployment rates. The government’s forthcoming infrastructure
projects will further boost the domestic economy.Thai businesses
can draw strength from its domestic market to seize opportunities
in the region as the regional countries work towards closer
economic integration.
UOB (Thai) also received a vote of confidence from businesses in
the 2014 Asiamoney Cash Management Poll on best foreign
domestic and best foreign cross-border cash management service
provider in Thailand.
Acknowledgement
I would like to thank the Board of Directors for their wise counsel
and guidance throughout the year. On behalf of the Board of
Directors, I would like to extend our appreciation to our valued
customers for their trust and continued support, and to the
management and staff for their commitment and dedication.
Our guiding principle has always been to do what is right for our
customers, at all times. This past year, UOB (Thai) became one of
the first five financial institutions in Thailand to earn a certification
from Thailand’s Private Sector Collective Action Coalition Against
Corruption. This was achieved by putting in place good business
principles and controls against corruption and bribery.
Wee Cho Yaw
Chairman
February 2015
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
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5
Board of Directors
Wee Cho Yaw
Wee Ee Cheong
Chinnawat Bulsuk
Suebtrakul Soonthornthum
Arun Chirachavala
Lee Chin Yong
Cheo Chai Hong
Peter Foo Moo Tan
Sanchai Apisaksirikul
Chairman
Deputy Chairman
Independent Director
Independent Director
Independent Director
Director
Director
Director
Director
Senior Management Team
Peter Foo Moo Tan
Steven Ngeo Swee Guan
Arthur Gan Lian Aun
Pailin Ngsriwongse
Patchanee Vongsilpawattana
Pisal Kattiyothaivong
Sayumrat Maranate
Piyaporn Ratanaprasartporn
Yuttachai Teyarachakul
Lim Keng Teck
Roongthip Angkasirisan
Yau Chi Choi
Ho Swit Moy Margaret
Pojanee Rungsang
Sanchai Apisaksirikul
Sirima Taecharungnirun
Sasiwimol Arayawattanapong
Ngamjitt Sirijindalert
Busba Virochpoka
Pornchai Wiwatpattarakul
Manit Panichakul
6
President and Chief Executive Officer
Managing Director, Head of Credit and Risk Management
Executive Director, Country Head of Global Markets
Executive Director, Country Head of Corporate Banking
Executive Director, Country Head of Transaction Banking
Executive Director, Country Head of Debt Capital Markets
Executive Director, Country Head of Business Banking
Executive Director, Country Head of Commercial Banking
Executive Director, Country Head of Personal Financial Services
Executive Director, Country Head of Channels
Executive Director, Country Head of Risk Management
Executive Director, Country Head of Retail Credit
Executive Director, Country Head of Credit Approval
Executive Director, Country Head of Special Asset Management
Executive Director, Country Head of Finance and Corporate Services
Executive Director, Country Head of Technology and Operations
Executive Director, Country Head of Human Resources
Executive Director, Country Head of Project Management Office
Executive Director, Country Head of Brand Performance and Corporate Communications
Executive Director, Country Head of Compliance and Country Head of Legal and Secretariat
Executive Director, Country Head of Internal Audit
| UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
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7
Brand Performance
and Corporate
Communications
Channels
Wholesales Banking
Shared Services
Debt Capital
Markets
Financial Institution
Retail Shared
Services
Legal and Secretariat
Personal Financial
Services
Transaction
Banking
Project Management
Office
Human Resources
Technology and
Operations
Commercial
Banking
Corporate
Banking
SAM Credit
Committee
IT Committee
Financial and
Corporate Services
Credit
Committee
ALCO
Business
Banking
Credit Management
Committee
Operational Risk
Management
Committee
Anti-Money
Laundering
Committee
Risk and Capital
Committee
Retail Credit
Special Asset
Management
Credit Approval
Risk Management
Head of Credit and
Risk Management
Nomination and
Compensation Committee
Management
Committee
Executive Committee
Global Markets
President and CEO
Board of Directors
Organisation Structure
Compliance
Internal Audit
Audit Committee
United Overseas Bank (Thai) Public Company Limited
31 December 2014
Management Discussion
and Analysis 2014
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| UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Management Discussion and Analysis 2014
Statutory Financial Results
The Bank reported operating income for the year 2014 of Baht 14,213 million, higher than the previous year by Baht 1,114 million or
9% contributed by rise in net interest income from loans, fee income on insurance and card-related business. Operating expenses
increased from Baht 7,835 million by Baht 651 million or 8%. In 2013, there was a reversal on impairment loss of properties foreclosed
and other assets of Baht 735 million. Consequently, a net profit before tax was at Baht 3,094 million, a decrease of Baht 243 million
compared to last year.
The loan impairment charge in 2014 stood at Baht 2,633 million, compared to same period last year of Baht 2,662 million.
In 2013, the Bank had net profit from discontinued operations of a subsidiary of Baht 242 million. As a result, a year-on-year basis net
profit after tax was lower by Baht 462 million to Baht 2,485 million in 2014.
Summarised Statutory Financial Results
For the Year Ended 31 December 2014 and 2013
Million Baht
Statements of Income
Interest income
Interest expenses
Net Interest income
Non-interest income
Total operating income
Operating expenses
Operating income after operating expenses
Reversal losses on impairment of properties foreclosed
and other assets
Operating profit before impairment
Bad debt, doubtful accounts and impairment loss
Net profit before income tax expenses
Income tax expenses
Non-controlling interests of subsidiaries
Profit from discontinued operations
Net profit
2014
audited
2013
audited
% change
18,532
7,362
11,170
3,044
14,213
8,486
5,727
17,578
7,247
10,331
2,767
13,099
7,835
5,264
5.4
1.6
8.1
10.0
8.5
8.3
8.8
5,727
2,633
3,094
608
1
2,485
735
5,999
2,662
3,337
630
2
242
2,947
(100.0)
(4.5)
(1.1)
(7.3)
(3.5)
(35.5)
(100.0)
(15.7)
Key Financial Position Items
Million Baht
Total assets
Total loans to customers
Total deposits
Total liabilities
Total shareholders’ equity
Non-performing loans (NPLs)
31 Dec 14
31 Dec 13
audited
audited
397,682
266,574
268,477
357,908
39,774
6,638
407,863
255,427
234,641
370,570
37,293
5,262
% change
(2.5)
4.4
14.4
(3.4)
6.7
26.1
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
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9
Management Discussion and Analysis 2014
Key Financial Ratios (%)
Net interest income to average assets
Gross loans to deposits ratio
Net loans to deposits ratio
NPLs to total loans ratio
Capital adequacy ratio
Net Interest Income
Net interest income (NII) for 2014 was Baht 11,170 million, a 8.1%
or Baht 838 million higher than last year, after payment to the
Deposit Protection Agency and Financial Institutions Development
Fund. The higher NII was mainly due to robust growth in loans
volume as well as credit margin.
Non-Interest Income
Non-interest income for 2014 was Baht 3,044 million, an increase
of Baht 277 million or 10% compared with the previous year.
This was mainly due to consistent growth in fees and services
income largely from insurance and card-related business.
Operating Expenses
The Bank’s operating expenses for 2014 was at Baht 8,486 million,
an increase of Baht 651 million or 8.3% compared with last year’s
expenses. This was excluding the reversal loss on impairment of
properties foreclosed and provision for contingent losses from
gain/loss sharing from Thai Asset Management Corporation’s
management of impaired assets and other assets amounting
to Baht 735 million. In addition, employee’s expenses in 2014
increased by Baht 377 million especially in lending and sales. The
non-staff expenses increased by THB 274 million mainly from the
business related areas including advertising expenses, specific
business taxes, and provision for contingent liabilities.
Impairment Loss on Loans
The Bank set aside a total of Baht 2,633 million in loan loss
provisions for 2014, which was 1.1% lower than provisions
made for the previous year, in line with the Bank’s prudent and
conservative provision policy.
10
31 Dec 14
audited
31 Dec 13
audited
2.8
99.3
96.5
2.3
18.0
2.7
108.9
106.0
1.7
15.9
change
0.1
(9.6)
(9.5)
0.6
2.1
Capital Expenditure
The Bank’s capital expenditure for 2014 totaled Baht 1,009 million,
higher by Baht 481 million compared with Baht 528 million in
2013, an increase of Baht 481 million primarily due to cost of land
for the new Operation and Data Center.
Dividend Payment Policy
The Bank’s dividend payment policy is governed by Bank of
Thailand and The Public Company Limited Act. The dividend
payment is subject to approval by shareholders at the Annual
General Meeting, and does not exceed 45% of net profit for the
year.
Assets
In 2014, loans increased by 4.4% or Baht 11,146 million to
THB 266,574 million, largely contributed by Retail Banking
businesses. Total assets as at 31 December 2014 was at
Baht 397,682 million, a decrease of Baht 10,181 million or 2.5%
from the previous year, largely due to the decline in investment
and interbank activities.
Liabilities
In 2014, deposits grew by 14.4% or Baht 33,835 million to
Baht 268,477 million. However, total liabilities dropped by 3.4%
to Baht 357,908 million, largely attributed to interbank and money
market items of Baht 28,103 million and the maturity of bills of
exchange of Baht 22,440 million in 2014.
Shareholders’ Equity
As of 31 December 2014, shareholders’ equity was at
Baht 39,774 million, an increase of Baht 2,481 million, or 6.7%
from last year was mainly from net profit of the year.
| UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Management Discussion and Analysis 2014
Loans Portfolio
% of total loans
Housing
Trading
Manufacturing
Real Estate
Services
Utilities
Bank and Finance
Construction
Agriculture, Forestry and Mining
Others
Total Loans
Loan
by Industry
2014
Housing
34.0%
Trading
16.5%
Manufacturing
13.0%
Real Estate
5.9%
Services
5.8%
Utilities
5.4%
Bank and Finance
2.3%
Construction
2.0%
Agriculture, Forestry
and Mining
0.4%
Others
14.7%
Loan
by Industry
2013
2014
2013
34.0
16.5
13.0
5.9
5.8
5.4
2.3
2.0
0.4
14.7
30.1
18.7
13.5
5.8
6.0
6.7
2.9
2.1
0.8
13.4
100.0
100.0
Housing
30.1%
Trading
18.7%
Manufacturing
13.5%
Real Estate
5.8%
Services
6.0%
Utilities
6.7%
Bank and Finance
2.9%
Construction
2.1%
Agriculture, Forestry
and Mining
0.8%
Others
13.4%
The proportion of housing loans to total loans increased from 30.1% in 2013 to 34.0% in 2014. While loans to the trading industry went
down from 18.7% to 16.5% and loans to the utilities industry also decreased from 6.7% to 5.4%.
Loans to Top 10 Customer Groups
% of total loans
Loans to top 10 customer groups
Others
Total loans
2014
2013
7.1
92.9
7.6
92.4
100.0
100.0
The loan concentration in 2014 decreased from the previous year. Loans to the top 10 largest customer groups accounted for 7.1%
of total loans, dropped from 7.6% in 2013.
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
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11
Management Discussion and Analysis 2014
Classification of Loans*
2014
2013
Million Baht
%
Million Baht
%
Pass
Special mention
256,525
3,892
96.1
1.5
301,488
3,979
97.0
1.3
Total Performing loans
260,417
97.6
305,467
98.3
Substandard
Doubtful
Doubtful of loss
1,409
858
4,372
0.5
0.3
1.6
1,321
628
3,313
0.4
0.2
1.1
Total NPLs
6,638
2.4
5,262
1.7
267,055
100.0
310,729
100.0
Grand total
* Including interbank and money market loans
Asset Quality Ratios
%
NPLs / Total loans*
Allowance for doubtful accounts / NPLs
Allowance for doubtful accounts / Total loans*
2014
2013
2.3
120.7
3.0
1.7
131.7
2.7
* Including interbank and money market loans
Non-Performing Loan (NPL) Management
NPLs in 2014 stayed at Baht 6,638 million, an increase of Baht 1,376 million when compared with 5,262 million in 2013. As a result,
NPLs to total loans ratio rose to 2.3%.
Deposit Structure
% of total deposits
Current deposits
Savings deposits
Time deposits
- under 6 months
- 6 months - 1 year
- over 1 year
Total
12
| UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
2014
2013
2.9
54.8
42.3
5.7
29.5
7.1
3.1
44.5
52.4
8.5
37.1
6.8
100.0
100.0
Management Discussion and Analysis 2014
Deposit
Structure
2014
Current deposits
Savings deposits
Time deposits
< 6 mths
Time deposits
6 mths - 1 year
Time deposits
> 1 year
2.9%
54.8%
Current deposits
Savings deposits
Time deposits
< 6 mths
Time deposits
6 mths - 1 year
Time deposits
> 1 year
Deposit
Structure
2013
5.7%
29.5%
7.1%
3.1%
44.5%
8.5%
37.1%
6.8%
As at 31 December 2014, the Bank had total deposits of Baht 268,477 million, an increase of 14.4% from end-2013, which was
largely driven by saving deposits. Total current and savings deposits accounted for 57.7% of total deposit bases, while fixed deposits
accounted for 42.3%. Net Loans-to-deposits ratio was 96.5% as at end-2014 compared with 106.0% as at end-2013.
Capital Funds 2014
Total capital fund
CET 1 & Tier 1 capital
Tier 2 capital and others
2013
Million Baht
% CAR
Million Baht
% CAR
43,707
36,946
6,761
18.0
15.3
2.7
39,011
32,268
6,743
15.9
13.2
2.7
The Bank adopted the Foundation Internal Ratings Based Approach (FIRB) under Basel III capital framework. As at 31 December 2014,
the Bank’s Total Capital Adequacy Ratio remained strong at 18.0% while the CET1 and Tier 1 capital ratio were at 15.3%, which was
above the Bank of Thailand (BOT)’s minimum requirement of 8.50% and 4.25% respectively.
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
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Independent Auditor’s Report
To the Shareholders of United Overseas Bank (Thai) Public Company Limited
I have audited the accompanying consolidated financial statements of United Overseas Bank (Thai) Public Company Limited and
its subsidiaries, which comprise the consolidated statements of financial position as at 31 December 2014, and the related consolidated
statements of comprehensive income, changes in shareholders’ equity and cash flows for the year then ended, and a summary of
significant accounting policies and other explanatory information. I have also audited the separate financial statements of United
Overseas Bank (Thai) Public Company Limited for the same period.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with Thai Financial
Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with
Thai Standards on Auditing. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.
The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the
financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant
to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit
also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.
Opinion
In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of United
Overseas Bank (Thai) Public Company Limited and its subsidiaries and of United Overseas Bank (Thai) Public Company Limited as at
31 December 2014, their financial performance and cash flows for the year then ended in accordance with Thai Financial Reporting
Standards.
Ratana Jala
Certified Public Accountant (Thailand) No. 3734
EY Office Limited
Bangkok: 6 March 2015
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| UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
United Overseas Bank (Thai) Public Company Limited
31 December 2014
Financial Statements
and Notes to Consolidated
Financial Statements
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
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15
Statements of Financial Position
As at 31 December 2014 and 2013
(Unit: Thousand Baht)
Consolidated financial statements
Assets
Cash
Interbank and money market items - net
Derivatives assets
Investments - net
Investments in subsidiaries - net
Loans to customers and accrued interest
receivables - net
Loans to customers
Accrued interest receivables
Total loans to customers and accrued
interest receivables
Less: Deferred revenue
Allowance for doubtful accounts
2014
2013
2014
2013
8
9
10
11
12
6,177,949
25,984,060
6,221,291
88,353,882
5,661
4,783,075
60,448,919
9,609,506
73,117,780
5,661
6,177,949
25,983,920
6,221,291
88,353,882
196,911
4,783,075
60,448,750
9,609,506
73,117,780
199,911
266,573,737
781,609
255,427,471
755,391
266,573,737
781,609
255,427,471
755,391
267,355,346
(341,581)
(8,011,309)
256,182,862
(495,848)
(6,930,723)
267,355,346
(341,581)
(8,011,309)
256,182,862
(495,848)
(6,930,723)
259,002,456
248,756,291
259,002,456
248,756,291
1,648
1,773,925
5,528,250
890,690
774,228
2,967,485
110,782
1,888,938
5,121,778
894,334
552,492
2,573,060
1,648
1,773,925
5,522,846
883,510
770,814
2,954,300
110,782
1,888,938
5,116,575
885,879
548,057
2,561,635
397,681,525
407,862,616
397,843,452
408,027,179
14
15
Total loans to customers and accrued interest
receivables - net
Customers' liability under acceptance
Properties foreclosed - net
Premises and equipment - net
Other intangible assets - net
Deferred tax assets - net
Other assets - net
Total assets
16
17
18
19
20
The accompanying notes are an integral part of the financial statements.
16
Separate financial statements
Note
| UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Statements of Financial Position
(continued)
(Unit: Thousand Baht)
Consolidated financial statements
Separate financial statements
Note
2014
2013
2014
2013
22
23
268,476,602
61,928,704
2,614,628
6,245,157
11,603,710
1,648
1,634,504
275,900
2,117,239
3,009,710
234,641,259
90,031,482
2,855,964
7,782,163
28,018,584
110,782
1,492,902
266,080
1,515,148
3,855,479
268,682,903
61,928,704
2,614,628
6,245,157
11,603,710
1,648
1,623,760
275,900
2,099,097
3,036,711
234,868,278
90,031,482
2,855,964
7,782,163
28,018,584
110,782
1,485,078
266,080
1,493,081
3,882,971
357,907,802
370,569,843
358,112,218
370,794,463
24,856,613
24,856,613
24,856,613
24,856,613
24,856,613
2,035,821
24,856,613
1,983,243
24,856,613
2,035,821
24,856,613
1,983,243
595,000
12,248,243
469,000
9,947,134
595,000
12,243,800
469,000
9,923,860
Equity attributable to equity holders of the Bank
Non-controlling interests of the subsidiaries
39,735,677
38,046
37,255,990
36,783
39,731,234
-
37,232,716
-
Total shareholders' equity
39,773,723
37,292,773
39,731,234
37,232,716
397,681,525
407,862,616
397,843,452
408,027,179
Liabilities and shareholders' equity
Liabilities
Deposits
Interbank and money market items
Liability payable on demand
Derivatives liabilities
Debt issued and borrowings
Bank's liability under acceptance
Provisions for long-term employee benefits
Provisions for other liabilities
Accrued expenses
Other liabilities
10
24
25
26
27
Total liabilities
Shareholders' equity
Share capital
Registered share capital
2,485,661,305 ordinary shares at par value
of Baht 10 each
Issued and paid-up share capital
2,485,661,305 ordinary shares at par value
of Baht 10 each
Other components of equity
Retained earnings
Appropriated
Statutory reserve
Unappropriated
28
29
Total liabilities and shareholders' equity
Peter Foo Moo Tan
President and Chief Executive Officer
Sanchai Apisaksirikul
Director and Executive Director
The accompanying notes are an integral part of the financial statements.
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
|
17
Statements of Comprehensive Income
For the years ended 31 December 2014 and 2013
(Unit: Thousand Baht)
Consolidated financial statements
Continuing Operations
Interest income
Interest expenses
2014
2013
2014
2013
41
42
18,531,763
7,361,861
17,578,068
7,246,661
18,531,736
7,364,798
17,578,021
7,249,869
11,169,902
10,331,407
11,166,938
10,328,152
3,336,484
396,305
3,078,853
360,353
3,318,597
568,053
3,078,504
532,804
43
2,940,179
2,718,500
2,750,544
2,545,700
44
45
(185,975)
61,442
30,587
197,343
(454,742)
162,134
24,555
83,022
233,872
(185,975)
62,377
60,587
222,888
(454,742)
136,408
549,554
83,022
235,383
14,213,478
13,098,748
14,077,359
13,423,477
4,341,710
9,600
1,143,777
630,367
3,964,827
9,390
1,121,862
567,268
4,224,976
9,600
1,139,644
630,156
3,857,485
9,390
1,116,105
567,262
(5,130)
525,584
1,840,185
(734,857)
545,997
1,625,664
(5,130)
525,584
1,811,314
(734,857)
545,997
1,610,048
Net interest income
Fees and service income
Fees and service expenses
Net fees and service income
Net losses on trading and foreign exchange
transactions
Net gains on investments
Dividend income
Gain on NPL repayment
Other operating income
Total operating income
Other operating expenses
Employee's expenses
Directors' remuneration
Premises and equipment expenses
Taxes and duties
Reversal on impairment loss of properties foreclosed
and other assets
Data Processing charges
Other expenses
Separate financial statements
Note
46
8,486,093
7,100,151
8,336,144
6,971,430
Bad debt, doubtful accounts and impairment loss
Total other operating expenses
47
2,633,064
2,661,947
2,633,064
2,661,947
Profit before income tax expenses
Income tax expenses
37
3,094,321
608,078
3,336,650
629,974
3,108,151
605,319
3,790,100
625,356
2,486,243
2,706,676
2,502,832
3,164,744
Profit from continuing operations
Discontinued operations
Net profit after tax from discontinued operations
Net profit
13
-
242,134
-
-
2,486,243
2,948,810
2,502,832
3,164,744
The accompanying notes are an integral part of the financial statements.
18
| UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Statements of Comprehensive Income
(continued)
(Unit: Thousand Baht)
Consolidated financial statements
Note
Other comprehensive income (loss)
Continuing operations
Gain on revaluation of available-for-sale investments
Actuarial losses on defined benefit plans
Income tax relating to components of other
comprehensive loss
13
Total other comprehensive income from
discontinued operations
2013
Separate financial statements
2014
2013
48
Total other comprehensive loss from
continuing operations
Discontinued operations
Other comprehensive income from
discontinued operations
2014
126,697
(145,073)
3,558
(132,998)
126,697
(143,850)
3,558
(133,443)
3,675
25,888
3,431
25,977
(14,701)
(103,552)
(13,722)
(103,908)
-
1,185
-
-
-
1,185
-
-
(14,701)
(102,367)
(13,722)
(103,908)
Total comprehensive income
Total comprehensive income from continuing
operations
Total comprehensive income from discontinued
operations
2,471,542
2,603,124
2,489,110
3,060,836
-
243,319
-
-
Total comprehensive income
2,471,542
2,846,443
2,489,110
3,060,836
Net profit attributable to:
Equity holders of the Bank
Net profit from continuing operations
Net profit from discontinued operations
2,484,980
-
2,704,718
242,134
2,502,832
-
3,164,744
-
Net profit attributable to the Bank
2,484,980
2,946,852
2,502,832
3,164,744
1,263
-
1,958
-
Total other comprehensive loss
Non-controlling interests of the subsidiaries
Net profit from continuing operations
Net profit from discontinued operations
Net profit attributable to non-controlling interests of
subsidiaries
1,263
1,958
2,486,243
2,948,810
The accompanying notes are an integral part of the financial statements.
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
|
19
Statements of Comprehensive Income
(continued)
(Unit: Thousand Baht)
Consolidated financial statements
Note
Total comprehensive income attributable to:
Equity holders of the Bank
Total comprehensive income from continuing
operations
Total comprehensive income from discontinued
operations
Total comprehensive income attributable to the Bank
Non-controlling interests of the subsidiaries
Total comprehensive income from continuing
operations
Total comprehensive income from discontinued
operations
Total comprehensive income attributable to
non-controlling interests of the subsidiaries
Earnings per share of equity holders of the Bank
Basic earning per share (Baht)
From continuing operations
From discontinued operations
2013
2014
2013
2,470,279
2,601,184
2,489,110
3,060,836
-
243,319
-
-
2,470,279
2,844,503
2,489,110
3,060,836
1,263
1,940
-
-
1,263
1,940
2,471,542
2,846,443
1.00
-
1.09
0.10
1.01
-
1.27
-
1.00
1.19
1.01
1.27
38
Peter Foo Moo Tan
President and Chief Executive Officer
The accompanying notes are an integral part of the financial statements.
20
Separate financial statements
2014
| UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Sanchai Apisaksirikul
Director and Executive Director
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
|
21
-
1,635,124
(15,560)
-
Beginning balance as of 1 January 2013
24,856,613
Disposal and amortisation of revaluation surplus on assets
Net profit for the year
Other comprehensive income (loss)
Total comprehensive income for the year
Unappropriated retained earnings transferred to
statutory reserve
-
The accompanying notes are an integral part of the financial statements.
24,856,613
1,570,785
465,036
-
-
Ending balance as of 31 December 2014
363,679
101,357
101,357
1,619,564
(48,779)
-
Beginning balance as of 1 January 2014
24,856,613
Disposal and amortisation of revaluation surplus on assets
Net profit for the year
Other comprehensive income (loss)
Total comprehensive income for the year
Unappropriated retained earnings transferred to
statutory reserve
-
363,679
1,619,564
investments
24,856,613
Ending balance as of 31 December 2013
360,831
2,848
2,848
assets
share capital
surplus on
surplus on
Retained earnings
595,000
126,000
469,000
-
469,000
160,000
309,000
-
Total equity
of the Bank
37,255,990
-
12,248,243
(126,000)
39,735,677
-
9,947,134 37,255,990
58,187
9,408
2,484,980
2,484,980
(116,058)
(14,701)
2,368,922
2,470,279
9,947,134
(160,000)
controlling
Non-
38,046
-
36,783
1,263
1,263
36,783
-
39,773,723
-
37,292,773
9,408
2,486,243
(14,701)
2,471,542
37,292,773
-
34,843 34,442,012
4,318
1,958
2,948,810
(18)
(102,367)
1,940
2,846,443
subsidiaries
Total
(Unit: Thousand Baht)
equity holders interests of the
7,245,601 34,407,169
19,878
4,318
2,946,852
2,946,852
(105,197)
(102,349)
2,841,655
2,844,503
reserve Unappropriated
Statutory
Revaluation Appropriated
Revaluation
Issued
Other components of equity
attributable to
Consolidated financial statements
Equity attributable to equity holders of the Bank
and paid-up
For the years ended 31 December 2014 and 2013
Statements of Changes in Shareholders’ Equity
22
| UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
24,856,613
24,856,613
24,856,613
Ending balance as of 31 December 2013
Beginning balance as of 1 January 2014
Disposal and amortisation of revaluation surplus on assets
Net profit for the year
Other comprehensive income (loss)
Total comprehensive income for the year
Unappropriated retained earnings transferred to statutory reserve
Ending balance as of 31 December 2014
The accompanying notes are an integral part of the financial statements.
Peter Foo Moo Tan
President and Chief Executive Officer
24,856,613
-
Issued
and paid-up
share capital
Beginning balance as of 1 January 2013
Disposal and amortisation of revaluation surplus on assets
Net profit for the year
Other comprehensive income (loss)
Total comprehensive income for the year
Unappropriated retained earnings transferred to statutory reserve
(continued)
Statements of Changes in Shareholders’ Equity
1,570,785
1,619,564
(48,779)
-
1,619,564
1,635,124
(15,560)
-
Revaluation
surplus on
assets
595,000
469,000
126,000
469,000
309,000
160,000
12,243,800
9,923,860
58,187
2,502,832
(115,079)
2,387,753
(126,000)
9,923,860
7,005,994
19,878
3,164,744
(106,756)
3,057,988
(160,000)
39,731,234
37,232,716
9,408
2,502,832
(13,722)
2,489,110
-
37,232,716
34,167,562
4,318
3,164,744
(103,908)
3,060,836
-
Total
(Unit: Thousand Baht)
Unappropriated
Retained earnings
Appropriated
Statutory
reserve
Sanchai Apisaksirikul
Director and Executive Director
465,036
363,679
101,357
101,357
-
363,679
360,831
2,848
2,848
-
Revaluation
surplus on
investments
Other components of equity
Separate financial statements
Statements of Cash Flows
For the years ended 31 December 2014 and 2013
(Unit: Thousand Baht)
Consolidated financial statements
Cash flows from operating activities
Profit before income tax expenses from continuing operations
Profit before income tax expenses from discontinued
operations
Profit before income tax expenses
Adjustments to reconcile profit before income tax to net cash
provided by (paid from) operating activities:
Depreciation
Amortisation and loss on assets written off
Unrealised (gain) loss on revaluation of investments
(Reversal) impairment loss on securities
Bad debt, doubtful accounts and impairment loss
Gain on entire business transfer of a subsidiary
Reversal on impairment loss of properties foreclosed
and other assets
Gain on disposal of investments
Gain on disposal of premises and equipment
(Gain) loss on exchange
(Increase) decrease in accrued other income
Increase in provisions for long-term employee benefits
Increase (decrease) in provisions
Increase in accrued other expenses
Net interest income
Dividend income
Cash received on interest income
Cash received on dividend income
Cash paid on interest expenses
Cash paid on income tax
Income from operating activities before changes in
operating assets and liabilities
Separate financial statements
2014
2013
2014
2013
3,094,321
3,336,650
3,108,151
3,790,100
-
263,097
-
-
3,094,321
3,599,747
3,108,151
3,790,100
336,967
175,363
19,950
1,114
3,156,688
-
339,226
184,492
(14,985)
(9,461)
3,104,519
(165,505)
335,756
173,776
19,950
(24,612)
3,156,688
-
335,618
182,841
(14,985)
16,265
3,104,519
-
(8,479)
(62,781)
(4,328)
200,710
(19,810)
157,022
9,820
138,605
(11,169,902)
(30,587)
18,516,970
30,587
(7,700,892)
(508,250)
(734,857)
(166,334)
(5,154)
(1,235,272)
33,397
134,381
(47,273)
159,294
(10,331,407)
(24,555)
18,108,691
24,555
(7,213,059)
(291,280)
(8,479)
(62,781)
(4,328)
200,710
(20,094)
155,325
9,820
141,344
(11,166,938)
(60,587)
18,514,643
30,587
(7,704,225)
(502,983)
(734,857)
(166,334)
(3,992)
(1,235,272)
(13,726)
131,952
(47,273)
156,950
(10,328,152)
(549,554)
18,115,181
24,555
(7,216,390)
(271,140)
6,333,088
5,449,160
6,291,723
5,276,306
The accompanying notes are an integral part of the financial statements.
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
|
23
Statements of Cash Flows
(continued)
(Unit: Thousand Baht)
Consolidated financial statements
2014
2013
Separate financial statements
2014
2013
(Increase) decrease in operating assets
Interbank and money market items
Investment in securities for trading
Derivatives assets
Loans to customers
Properties foreclosed
Other assets
Increase (decrease) in operating liabilities
Deposits
Interbank and money market items
Liability payable on demand
Derivatives liabilities
Debt issued and short-term borrowings
Provisions for long-term employee benefits
Other liabilities
34,450,724
3,446
7,562,505
(13,304,563)
275,772
54,973
(5,021,652)
(4,402,555)
1,396,453
(42,853,540)
564,125
348,274
34,450,695
3,446
7,562,505
(13,304,563)
275,772
56,731
(4,928,713)
(4,402,555)
1,396,453
(42,853,681)
564,125
423,424
33,779,634
(28,408,946)
(241,213)
(5,714,849)
(22,238,273)
(160,493)
(506,738)
32,748,734
6,343,784
(711,180)
(2,193,412)
(480,019)
(129,714)
1,013,585
33,758,917
(28,408,946)
(241,213)
(5,714,849)
(22,238,273)
(160,493)
(506,833)
32,761,399
6,300,965
(711,180)
(2,193,413)
(480,019)
(129,714)
1,020,375
Net cash provided by (used in) operating activities
11,885,067
(7,927,957)
11,824,619
(7,956,228)
Cash flows from investing activities
Proceeds from sales of investments
Cash paid for investments
Dividend received from subsidiary companies
Cash received from liquidation of a subsidiary
Cash received from entire business transfer of subsidiary
Proceeds from sales of premises and equipment
Purchases of premises and equipment
Purchases of intangible assets
Proceeds from sales of intangible assets
39,854,602
(55,188,561)
4,353
(843,349)
(166,034)
-
79,154,418
(76,181,072)
600,000
10,033
(344,982)
(183,204)
74
39,854,602
(55,188,561)
30,000
28,726
4,353
(841,935)
(165,726)
-
79,154,418
(76,181,072)
525,000
107,000
3,998
(343,384)
(182,386)
74
Net cash provided by (used in) investing activities
(16,338,989)
3,055,267
(16,278,541)
3,083,648
The accompanying notes are an integral part of the financial statements.
24
| UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Statements of Cash Flows
(continued)
(Unit: Thousand Baht)
Consolidated financial statements
Separate financial statements
2014
2013
2014
2013
Cash flows from financing activities
Cash received for debt issued and long-term borrowings
5,848,796
4,990,577
5,848,796
4,990,577
Net cash provided by financing activities
5,848,796
4,990,577
5,848,796
4,990,577
Net Increase in cash and cash equivalents
Cash and cash equivalents as at 1 January
1,394,874
4,783,075
117,887
4,665,188
1,394,874
4,783,075
117,997
4,665,078
Cash and cash equivalents as at 31 December
6,177,949
4,783,075
6,177,949
4,783,075
67,777
109,671
67,777
109,671
Supplemental disclosures of cash flows information
Non-cash item
Properties foreclosed received in settlement of debts
from borrowing
Peter Foo Moo Tan
President and Chief Executive Officer
Sanchai Apisaksirikul
Director and Executive Director
The accompanying notes are an integral part of the financial statements.
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
|
25
Notes to Consolidated Financial Statements
(continued)
For
the years ended 31 December 2014 and 2013
1.
Corporate information
United Overseas Bank (Thai) Public Company Limited (“the Bank”) is a public company incorporated and domiciled in Thailand.
The Bank’s main business is commercial banking. The registered office of the Bank is at 191 South Sathon Road, Sathon,
Bangkok. As at 31 December 2014, the Bank conducts its business through a network of 154 branches, covering all parts of
Thailand (2013: 155 branches). Its major shareholder is United Overseas Bank Limited, a company registered in Singapore.
All subsidiaries were incorporated as companies under Thai law and operate their businesses in Thailand. Their principal businesses
are derivatives brokerage and debt collection services.
2.
Basis of preparation
The financial statements have been prepared in accordance with Thai Financial Reporting Standards enunciated under the
Accounting Profession Act B.E. 2547 and the presentation of the financial statements has been made in compliance with
the Bank of Thailand (“BOT”)’s Notification No. Sor Nor Sor. 11/2553 regarding “Preparation and Announcement of Financial
Statements of Commercial Banks and Parent Companies of Financial Holding Groups”, dated 3 December 2010.
The financial statements in Thai language are the official statutory financial statements of the Bank. The financial statements
in English language have been translated from the Thai language financial statements.
The financial statements have been prepared on a historical cost basis except for those that have been disclosed in the accounting
policy.
3.
Basis of consolidation
(a) These consolidated financial statements include the financial statements of United Overseas Bank (Thai) Public Company
Limited (“the Bank”) and the following subsidiaries (“the subsidiaries”):
Country of
Business type registration
Subsidiaries
UOB Bullion and Futures
(Thai) Co., Ltd.
UOB Services Co., Ltd.
Derivatives
Brokerage
Debt Collection
Business
UOB Leasing (Thai) Co., Ltd.
Liquidation
Thai Wealth Management
Co., Ltd. (formerly known
as UOB Asset Management
Liquidation
(Thai) Co., Ltd.)
completed
Percentage of share
holdings
Percentage of total
assets included in
consolidated assets
As at 31 December
As at 31 December
Percentage of
income included in
consolidated income
For the years ended
31 December
2014
2013
2014
2013
2014
2013
Thailand
75.00
75.00
0.01
0.01
0.12
0.13
Thailand
Thailand
99.99
99.99
99.99
99.99
0.01
-*
Thailand
-
99.99
-
-*
-*
-
-
* The consolidated financial statements for the years ended 31 December 2014 and 2013 excluded the financial statements of a subsidiary company,
UOB Leasing (Thai) Co., Ltd.
26 | UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
-*
2.66
Notes to Consolidated Financial Statements
(continued)
UOB Asset Management (Thai) Co., Ltd transferred its entire business to UOB Asset Management (Thailand) Co., Ltd.
on 1 July 2013. It changed its name to “Thai Wealth Management Co., Ltd” and registered the dissolution of the business with
the Ministry of Commerce in October 2013. The consolidated financial statements for the year ended 31 December 2013
included operating results of Thai Wealth Management Co., Ltd. for the year then ended, which was separately presented
under "Profit from discontinued operations" in the consolidated statements of comprehensive income. Details are as disclosed
in Note 13 to the financial statements.
The consolidated financial statements for the year ended 31 December 2014 excluded the financial statements of Thai Wealth
Management Co., Ltd., which liquidation was completed and registered with the Department of Business Development,
Ministry of Commerce on 28 October 2014.
The consolidated financial statements for the years ended 31 December 2014 and 2013 excluded the financial statements of
a subsidiary company, UOB Leasing (Thai) Co., Ltd., because all of its business had already been transferred to the Bank,
including its assets, liabilities, commitments and employees. The subsidiary company registered its dissolution with the
Ministry of Commerce in the year 2010 and is in the process of being liquidated. The Management believes that the financial
statements as prepared by the management of the subsidiary for the years ended 31 December 2014 and 2013 are immaterial,
with the subsidiary presenting total assets as at 31 December 2014 of Baht 8 million (2013: Baht 8 million), shareholders’
equity of Baht 7 million (2013: Baht 8 million) and profit from operation for the year ended 31 December 2014 of
Baht 0.03 million (2013: profit Baht 0.04 million).
(b) Subsidiaries are entities in which the Bank has control over the financial and operating policies of those entities.
Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Bank obtains control, and
continue to be consolidated until the date when such control ceases. The effects to the consolidated financial statements
of all significant transactions between the Bank and its subsidiaries are eliminated in the consolidated financial statements,
including investment in subsidiaries and share capital of subsidiaries.
(c) The financial statements of the subsidiaries are prepared using the same accounting periods and significant accounting
policies as the Bank.
(d) The accompanying financial statements include the accounts of all branches after elimination of significant inter-branch
transactions and balances.
(e) If the Bank receives shares as a result of debt restructuring of a borrower, which causes the Bank to hold more than 20%
or 50% of the shares of such company, the Bank will not treat that investee company as an associated or a subsidiary
company, but will treat it as general investments since the Bank intends to hold such shares only temporarily.
(f)
The consolidated financial statements do not include the financial statements of unit trusts in which the Bank holds more
than 50% of their issued units since the Bank has no control over their financial and operating policies.
(g) The separate financial statements, which present investments in subsidiaries and associate under the cost method, have
been prepared solely for the benefit of the public.
(h) Non-controlling interests represent the portion of net income or loss and net assets of the subsidiaries that are not
held by the Bank and are presented separately in the consolidated statements of comprehensive income and within
equity in the consolidated statements of financial position.
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014 |
27
Notes to Consolidated Financial Statements
(continued)
4.
New financial reporting standards
Below is a summary of financial reporting standards that became effective in the current accounting year and those that will
become effective in the future.
(a) Financial reporting standards that became effective in the current accounting year
Conceptual Framework for Financial Reporting (revised 2014)
Accounting Standards:
TAS 1 (revised 2012)
Presentation of Financial Statements
TAS 7 (revised 2012)
Statement of Cash Flows
TAS 12 (revised 2012)
Income Taxes
TAS 17 (revised 2012)
Leases
TAS 18 (revised 2012)
Revenue
TAS 19 (revised 2012)
Employee Benefits
TAS 21 (revised 2012)
The Effects of Changes in Foreign Exchange Rates
TAS 24 (revised 2012)
Related Party Disclosures
TAS 28 (revised 2012)
Investments in Associates
TAS 31 (revised 2012)
Interests in Joint Ventures
TAS 34 (revised 2012)
Interim Financial Reporting
TAS 36 (revised 2012)
Impairment of Assets
TAS 38 (revised 2012)
Intangible Assets
Financial Reporting Standards:
TFRS 2 (revised 2012)
TFRS 3 (revised 2012)
TFRS 5 (revised 2012)
TFRS 8 (revised 2012)
Share-based Payment
Business Combinations
Non-current Assets Held for Sale and Discontinued Operations
Operating Segments
Accounting Standard Interpretations:
TSIC 15
Operating Leases - Incentives
TSIC 27
Evaluating the Substance of Transactions Involving the Legal Form of a Lease
TSIC 29
Service Concession Arrangements: Disclosures
TSIC 32
Intangible Assets - Web Site Costs
Financial Reporting Standard Interpretations:
TFRIC 1
Changes in Existing Decommissioning, Restoration and Similar Liabilities
TFRIC 4
Determining whether an Arrangement contains a Lease
TFRIC 5
Rights to Interests arising from Decommissioning, Restoration and Environmental
Rehabilitation Funds
TFRIC 7
Applying the Restatement Approach under TAS 29 Financial Reporting in Hyperinflationary
Economies
TFRIC 10
Interim Financial Reporting and Impairment
TFRIC 12
Service Concession Arrangements
TFRIC 13
Customer Loyalty Programmes
TFRIC 17
Distributions of Non-cash Assets to Owners
TFRIC 18
Transfers of Assets from Customers
Accounting Treatment Guidance for Stock Dividend
These financial reporting standards were amended primarily to align their content with the corresponding International Financial
Reporting Standards. Most of the changes were directed towards revision of wording and terminology, and provision of
interpretations and accounting guidance to users of the accounting standards.
28 | UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Notes to Consolidated Financial Statements
(continued)
TAS 31 (revised 2012), TSIC 29, TFRIC 5, TFRIC 7, TFRIC 12 and TFRIC 18 are not relevant to the business of the Bank and
its subsidiaries while the remaining Accounting Standards, Financial Reporting Standards, Accounting Standard Interpretations
and Financial Reporting Standard Interpretations will not have any significant impact on the financial statements.
(b) Financial reporting standards that will become effective in the future
The Federation of Accounting Professions has issued a number of revised and new financial reporting standards that become
effective for fiscal years beginning on or after 1 January 2015. These financial reporting standards were aimed at alignment with the
corresponding International Financial Reporting Standards, with most of the changes directed towards revision of wording
and terminology, and provision of interpretations and accounting guidance to users of accounting standards. The management
of the Bank and its subsidiaries believes they will not have any significant impact on the Bank and its subsidiaries’ financial
statements for the year when they are initially applied. However, some of these financial reporting standards involve changes to
key principles, as discussed below:
TAS 19 (revised 2014) Employee Benefits
This revised standard requires that the entity recognise actuarial gains and losses immediately in other comprehensive
income while the existing standard allows the entity to recognise such gains and losses immediately in profit or loss, or
in other comprehensive income, or to recognise them gradually in profit or loss.
This revised standard does not have any impact on the financial statements as the Bank and its subsidiaries already
recognised actuarial gains and losses immediately in other comprehensive income.
TFRS 10 Consolidated Financial Statements
TFRS 10 prescribes requirements for the preparation of consolidated financial statements and replaces the part dealing
with consolidated financial statements as included in TAS 27 Consolidated and Separate Financial Statements. This
standard changes the principles used in considering whether control exists. Under this standard, an investor is deemed
to have control over an investee if it has rights, or is exposed, to variable returns from its involvement with the investee,
and it has the ability to direct the activities that affect the amount of its returns, even if it holds less than half of the
shares or voting rights. This important change requires the management to exercise a lot of judgement when reviewing
whether the Bank and its subsidiaries have control over the investees and determine which entities have to be included
for preparation of the consolidated financial statements.
The management of the Bank and its subsidiaries believes that this standard will not have any significant impact on the
Bank and its subsidiaries’ financial statements.
TFRS 13 Fair Value Measurement
This standard provides guidance on how to measure fair value and stipulates disclosures related to fair value measurements.
Entities are to apply the guidance under this standard if they are required by other financial reporting standards to measure their
assets or liabilities at fair value. The effect of the change from the adoption of this standard is to be recognised prospectively.
Based on the preliminary analysis, the management of the Bank and its subsidiaries believes that this standard will not
have any significant impact on the Bank and its subsidiaries’ financial statements.
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014 |
29
Notes to Consolidated Financial Statements
(continued)
5.
Significant accounting policies
Significant accounting policies adopted by the Bank and its subsidiaries are summarised below.
5.1
Revenue recognition
(a) Interest and discount on loans
The Bank recognises interest on loans as income on an accrual basis. In accordance with the BOT’s regulation, interest
in arrears for more than three months from the due date, regardless of whether the loans are covered by collateral, is not
accrued as interest income but is instead recognised as income when received. In addition, interest accrued in arrears
for three months is reversed against interest income.
If loans are restructured, the Bank recognises interest income on a cash basis, and can return to recognise income on
an accrual basis only when the criteria per the BOT’s guideline are met.
Interest income from loans under litigation process and receivables purchased is recognised on a cash basis.
(b) Hire purchase and financial lease income recognition
Interest on hire-purchase receivables and financial lease receivables under hire-purchase agreements and financial lease
agreements with effective dates on or after 1 January 2008 is recognised over the installment period, using the effective
interest rate method and income. It is recognised when the installments fall, due irrespective of when actual collection is
made. When receivables are more than three months past due, interest recognition ceases and the outstanding interest
on such receivables is reversed against interest income.
For hire purchase agreements and long-term financial lease agreements with effective dates before 1 January 2008, the
Bank and a subsidiary company uses the outstanding balances of the pre-existing finance leases as of 1 January 2008
as the beginning balances and apply the effective interest rate method over the remainder of the lease period.
Rental income from operating lease contracts and car rent are recognised based on the term of lease except for overdue
receivables more than three months, which are recognised on a cash basis.
(c) Revenues from factoring are recognised on an accrual basis except for overdue receivables more than three months,
which are recognised on a cash basis.
(d) Management fees and registrar fees are calculated as a percentage of the net asset value of the funds managed by a
subsidiary or fixed amount as mentioned in prospectus and recognised as income on an accrual basis.
(e) Brokerage fees on derivatives business and service fees on derivatives business are recognised as income on the
transaction date.
(f)
Gains (losses) resulting from sales of securities and derivatives are recognised as at transaction date.
(g) Interest and dividends on investments
Interest on investments is recognised as income on an accrual basis based on the effective interest rate. Dividends are
recognised as income when the right to receive the dividend is established.
(h) Fee income and other service income are recognised on an accrual basis.
30 | UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Notes to Consolidated Financial Statements
(continued)
5.2
Expenses recognition
The Bank and its subsidiaries recognise expenses on an accrual basis.
5.3
Cash
Cash is the amount included in the statements of financial position under the caption of cash, and consist of cash on hand
and cheques in transit.
5.4
Claims on securities/Liabilities to deliver securities
The Bank enters into agreements to purchase securities or to sell securities that include agreements to sell or purchase the
securities back at certain dates in the future at fixed prices (Private Repo). Amounts paid for securities purchased subject
to a resale commitment are presented as assets under the caption of “Interbank and money market items - assets” and
the underlying securities are treated as collateral to such receivables. Securities sold subject to repurchase commitments
are presented as liabilities under the caption of “Interbank and money market items - liabilities” at the amounts received
from the sale of those securities, and the underlying securities are treated as collateral.
If securities purchased subject to a resale commitment are then sold on by the Bank subject to repurchase commitments,
this gives rise to “Claims on securities” and “Liabilities to deliver securities” as follows:
Claims on securities are the rights that the Bank retains to recall securities which are pledged as collateral for securities sold
subject to repurchase commitments, because the securities pledged in this transaction were previously received as collateral
by the Bank for a purchase of securities subject to resale commitments.
Liabilities to deliver securities is the Bank’s commitment to return to the counterparties or securities companies those
securities which are held as collateral for securities purchased subject to a resale commitment, because the Bank has used
the securities as collateral for another sale of securities subject to repurchase commitments.
5.5
Investments
The Bank and its subsidiaries classify investments in all types of debt securities and marketable equity securities as either
trading securities, available-for-sale securities, or held-to-maturity securities, and classify non-marketable equity securities
as general investment or investments in subsidiaries and associated company.
Investments classified as trading securities are stated at fair value. Change in the fair value of these securities are recorded
as gains or losses in profit or loss.
Investments classified as available-for-sale securities are stated at fair value. Change in the fair value of the securities are
recorded in other comprehensive income in the statement of comprehensive income and will be recognised in profit or loss
when the securities are sold.
Investments in debt securities held-to-maturity are stated at amortised cost net of allowance for impairment. Any loss from
impairment is charged to profit or loss.
General investments, other than investments in subsidiaries and associated company, are stated at cost net of allowance
for impairment (if any). Loss on impairment is charged to profit or loss.
Purchases and sales of investments are recognised on settlement date.
Realised gains or losses resulting from the disposal of securities are recognised in profit or loss from operation by using the
weighted average cost calculation method.
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014 |
31
Notes to Consolidated Financial Statements
(continued)
Interest income from debt securities is recognised on an accrual basis. Premiums and discounts arising on the acquisition of
securities are amortised or accreted to interest income in profit or loss based on effective yield rate over the term of the
securities.
Income from equity investments and other non-fixed income investments is recognised as dividend income when the right
to receive the dividend is established.
Fair values of securities are calculated on the following basis:
(i)
For government securities and state enterprises securities, fair values are calculated by using the BOT formula, based
on the average latest bidding price posted on the Thai Bond Market Association.
(ii) For listed equity securities, fair value is the last bid price quoted in The Stock Exchange of Thailand on the last business
day of the year.
(iii) For unit trust, fair value is the Net Assets Value (NAV) as at the end of the year.
(iv) For private enterprises debt securities, the average latest bidding price of the Thai Bond Market Association are used as
fair values. In the absence of such prices, fair values are determined by applying the aforementioned the BOT yield curve
adjusted for risk in accordance with the criteria established by the BOT.
In the event the Bank reclassifies investments from one type to another, such investments will be readjusted to their fair value
on the date of reclassification. The difference between the carrying amount of the investments and the fair value on the
date of reclassification are recorded as gains or losses in profit or loss in the statements of comprehensive income or recorded
as other components of equity, depending on the type of investment which is reclassified.
5.6
Investments in subsidiaries and associated company
Separate financial statements
Investments in subsidiaries and associated company are stated at cost net of allowance for impairment (if any). Loss on
impairment is recorded as an expense in profit or loss.
Consolidated financial statements
Investments in associated company are recorded using the equity method. Under this method, investments are initially
recorded at the acquisition cost and are adjusted to reflect the attributable share of the profits or losses of the associated
company, in proportion to the investment.
5.7
Loans
Loans include overdrafts, term-loans, trade bills, hire purchase and financial lease receivables and other loans. All items
categorised under loans (except for hire purchase, financial lease and overdrafts) are disclosed at the principal amount
outstanding, net of unearned discounts received in advance, with accrued interest presented separately in the statements
of financial position, as a single line item for all loans together.
Hire purchase receivables and financial lease receivables are stated at the contract value of the hire purchase receivables
and financial lease receivables net of deferred revenue, which is presented after netting commission expenses and initial
direct cost on the inception of the contracts.
Overdrafts are stated at the drawn amounts together with any accrued interest.
32 | UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Notes to Consolidated Financial Statements
(continued)
Discounts received in advance in respect of bills purchased and other unearned interest income are recognised on an accrual
basis over the period to maturity of the bills.
Loans purchased by or transferred to the Bank are stated at acquisition cost, after deducting allowance for impairment.
5.8
Allowance for doubtful accounts
The Bank provides allowance for doubtful accounts in accordance with the Notifications of the Bank of Thailand (“the BOT”)
and adjusts the allowance by any additional amounts that are expected not to be collectible, based on an analysis and
evaluation of the current status of the debtors, the credit risk of the debtors, collateral, historical loss and management’s
experience. Additional allowances (reversals of allowances) are recognised as expenses during the year.
For loans and receivables classified as pass (including restructured receivables) and special mentioned, the Bank records
provision at rates of not less than 1% and not less than 2% of the loan balances (excluding accrued interest receivable) net
of collateral value, in accordance with the BOT’s guideline, and adjusts the allowance taking into consideration the probability
of default and the loss given default. Parameters and assumptions have been reviewed and will be monitored on an ongoing
basis to ensure they remain applicable.
For non-performing loans and receivables which are classified as sub-standard, doubtful and doubtful of loss, the Bank
records allowance for doubtful accounts at 100% of the debt balance remaining after deducting the present value of expected
future cash inflows from debt collection or from collateral disposal, with the discount interest rate and the period of collateral
disposal being set with reference to the BOT’s guidelines.
For unsecured consumer loan, the collective approach is applied based on historical loss experience of each customer
group.
Allowance for doubtful accounts for other receivables is provided for the estimated losses that may be incurred in the
collection of receivables and based on the review of current status of receivables outstanding at the end of reporting period.
Bad debts are written off during the period that the Bank considers they are uncollectible as approved by the Special Asset
Management Credit Committee and are deducted from the allowance for doubtful accounts. All bad debt recovered are
recognised as income on cash basis which is presented as an offset to bad debts and doubtful accounts in profit or loss
from operation.
The Bank writes off unsecured consumer loans that are overdue more than 180 days. Those unsecured consumer loans
comprise of credit card receivables and other unsecured personal loans.
5.9
Troubled debt restructuring
The Bank restructures loans by means of transferring assets, transferring equity or modifying the terms of the loan.
Loans which have been restructured through a modification of terms are stated at the present value of estimated future
receivable cash flows using discount rates equivalent to the market interest rates applicable at the time of the restructuring.
The difference between the fair value of the loan as at the restructuring date and the previous book value is accounted for
as revaluation allowance for debt restructuring and amortised to profit or loss from operation as interest income based on
the amount received over the remaining period of the restructuring agreement.
In cases where the troubled debt restructuring involves the transfer of assets or equity, the Bank records the assets or equity
interest received as a result of debt restructuring at their fair value (based on the value appraised by internal appraisers or
external independent appraisers) providing this does not exceed the amount of principal legally claimable from the debtor
(including interest of which recognition has ceased until the restructuring date). Any excess of the fair value of the assets
over the book value is recognised as interest income in part of profit or loss from operation.
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014 |
33
Notes to Consolidated Financial Statements
(continued)
Losses arising from debt restructuring through waivers of part of principal or recorded accrued interest receivable are
recognised in part of profit or loss from operation when incurred.
5.10 Properties foreclosed
Properties foreclosed of the Bank are stated at the lower of cost and net realisable value. Net realisable value is determined
by using the latest appraisal value, considering selling expenses in accordance with the BOT’s guidelines. Properties
foreclosed which have been received as a result of an asset swap are recorded at the lower of the legally claimable value
of the loan or the net realisable value of the foreclosed property.
Losses on impairment are charged to profit or loss in the statement of comprehensive income. Gains or losses on the sale
of properties foreclosed are recognised only when such properties are sold.
5.11 Premises and equipment and depreciation
Land is stated at cost or reappraised value. Premises is stated at cost or reappraised value less accumulated depreciation
and allowance for impairment (if any). Equipment is stated at cost less accumulated depreciation.
Depreciation is calculated by reference to their cost or reappraised value on a straight-line basis over the following estimated
useful lives:
Premises
50 years
Equipment
5 years or 10 years
No depreciation is determined for land and assets under installation.
Premises and equipment are initially recorded at cost. Land and premises are however subsequently revalued by the
independent appraisers to their fair value in accordance with the guidelines announced by the BOT. The Bank’s policy is
to revalue these assets every 5 years in order that the book value of these assets at the end of reporting period does not
differ materially from their fair value.
Differences arising from revaluation are dealt with in the financial statements as follows:
-
When the Bank’s carrying amount of asset is increased as a result of a revaluation, the increase is credited directly to the
other comprehensive income (loss) and the cumulative increase is recognised in shareholders’ equity as “Revaluation
surplus on assets” under the heading of other components of shareholders’ equity in statements of financial position.
However, if the asset is previously devalued and the Bank used to recognise such a revaluation decrease as an expense
in profit or loss from operation, a revaluation increase from this revaluation is then recognised as income to the extent
that it reverses a revaluation decrease in respect of the same asset previously recognised as an expense.
-
When the Bank’s carrying amount of asset is decreased as a result of a revaluation, the decrease is recognised as an
expense in profit or loss from operation. However, if the asset is previously revalued and still has the outstanding revaluation
surplus left in shareholders’ equity under the heading of “Revaluation surplus on asset”, the revaluation decrease is then
charged to the other comprehensive income (loss) to the extent that it does not exceed on amount already held in
“Revaluation surplus on assets” in respect of the same assets.
Amortisation of the revaluation surplus on assets is transferred directly to retained earnings.
The revaluation surplus on assets can neither be offset against deficit nor used for dividend payment.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected
from its use or disposal. Any gain or loss arising on disposal of an asset (calculated as the difference between the net disposal
proceeds and the carrying amount of the asset) is included in profit or loss from operation when the asset is derecognised.
34 | UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Notes to Consolidated Financial Statements
(continued)
5.12 Leasehold rights
Leasehold rights are stated at cost less accumulated amortisation under the heading of “Other assets” in statements of
financial position. Leasehold rights are amortised on a straight-line basis over the lease periods and the amortisation amounts
are recognised as expenses in profit or loss from operation.
5.13 Intangible assets and amortisation
Intangible assets are carried at cost less accumulated amortisation and an accumulated impairment losses (if any).
Intangible assets with finite lives are amortised on a systematic basis over the economic useful life and tested for impairment
whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation
method of such intangible assets are reviewed at least at each financial year end. The amortisation expense is charged to
profit or loss from operation.
A summary of the intangible assets with finite useful lives is as follows.
Useful lives
Application softwares
10 years
5.14 Entire Business Transfer /discontinued operations
In the consolidated statements of comprehensive income of the reporting period and the prior comparable period, income
and expenses from discontinued operations are reported separately from income and expenses from continuing operations
and shown as profit from discontinued operation in the line item next to profit from continuing operations.
5.15 Provisions - other liabilities
Provisions are recognised when the Bank and its subsidiaries has a present obligation as a result of a past event and it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation. In the event
that no independent market value can be obtained, then an estimate is assessed.
5.16 Related party transactions
Related parties comprise enterprises and individuals that control, or are controlled by, the Bank and its subsidiaries, whether
directly or indirectly, or which are under common control with the Bank and its subsidiaries.
They also include associated company and individuals which directly or indirectly own a voting interest in the Bank and
its subsidiaries that gives them significant influence over the Bank and its subsidiaries, key management personnel, directors
and officers with authority in the planning and direction of the Bank’s and its subsidiaries operations, together with close
family members of such persons and companies which are controlled and influenced by them, whether directly or indirectly.
5.17 Impairment of assets
At each reporting date, the Bank and its subsidiaries performs impairment reviews in respect of an asset whenever events or
changes in circumstances indicate that an asset may be impaired. An impairment loss is recognised when the recoverable
amount of an asset, which is the higher of the asset’s fair value less costs to sell and its value in use, is less than the carrying
amount. In determining value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In
determining fair value less costs to sell, an appropriate valuation model is used. These calculations are corroborated by a
valuation model that, based on information available, reflects the amount that the Bank and its subsidiaries could obtain
from the disposal of the asset in an arm’s length transaction between knowledgeable, willing parties, after deducting the
costs of disposal.
An impairment loss is recognised in profit or loss. However in cases where property, plant and equipment was previously
revalued and the revaluation was taken to equity, a part of such impairment is recognised in equity up to the amount of the
previous revaluation.
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014 |
35
Notes to Consolidated Financial Statements
(continued)
In the assessment of asset impairment if there is any indication that previously recognised impairment losses may no longer
exist or may have decreased, the Bank and its subsidiaries estimates the asset’s recoverable amount. A previously recognised
impairment loss is reversed only if there has been a change in the assumptions used to determine the asset’s recoverable
amount since the last impairment loss was recognised. The increased carrying amount of the asset attributable to a reversal of
an impairment loss shall not exceed the carrying amount that would have been determined had no impairment loss been
recognised for the asset in prior years. Such reversal is recognised in profit or loss unless the asset is carried at a revalued
amount, in which case the reversal, which exceeds the carrying amount that would have been determined, is treated as a
revaluation increase.
5.18 Employee benefits
Short-term benefits
Salaries, wages, bonuses and contributions to the social security fund are recognised as expenses when incurred.
Leave entitlements are recognised when they accrue to employees. Provision for leave entitlements is made based on
contractual terms, with adjustment for expected attrition.
Post-employment benefits
Defined contribution plans
The Bank and its employees established the provident funds under the Provident Fund Act B.E. 2530. According to the
Fund’s regulations, every employee, after the probation period, is entitled to apply for membership. The employees contribute
to the fund at the rate of 2% or 5% or 6% of basic salary and the Bank contributes to the fund at the rate of 5% - 6% of basic
salary. The employees are entitled to the benefits upon termination of employment status except when the terminated
employee has violated the rules of the Bank.
The Bank’s subsidiaries and their employees also established their provident funds under the Provident Fund Act B.E. 2530.
The Bank’s subsidiaries and their employees contribute to the funds at the rate between 2% - 10% of basic salary depending
upon the number of years of services of each employee. The funds will be paid to employees upon termination in accordance
with the rules of the funds.
The funds set up by the Bank and its subsidiaries are managed independently by UOB Asset Management (Thailand)
Co., Ltd. Therefore, these funds do not appear in the consolidated and separate statements of financial position of the Bank
and its subsidiaries.
The Bank and its subsidiaries’s contributions are recognised as expenses when incurred.
Defined benefit plans or other defined benefit plans
The Bank and its subsidiaries has obligations in respect of the severance payments it must make to employees upon retirement
under labor law and also has long-term employment benefit scheme for employees of Bank of Asia Public Co., Ltd. who
joined the Bank prior to 16 May 2005 and have been employed at least 15 years, the benefits being based on the latest
month’s salary and the years of service. Employees will receive half of this long-term employment benefits when they resign
or will receive it in full when they retire. The Bank and its subsidiaries treats these severance payment to be post-employment
benefits.
The obligation under the defined benefit plan is determined by a professionally qualified independent actuary using the
projected unit credit method.
Actuarial gains and losses arising from post-employment benefits are recognised immediately in the other comprehensive
income.
36 | UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Notes to Consolidated Financial Statements
(continued)
5.19 Operating leases
Leases of assets where a significant portion of the risks and rewards of ownership are retained by the lessor are classified
as operating leases. Operating lease payments are recognised as an expense in profit or loss from operation on a straight
line basis over the lease term.
5.20 Share-based payment transactions
The cost of the share-based payment plan of United Overseas Bank Limited (“major shareholder”) will be invoiced by the
major shareholder, and the Bank will treat the invoiced amounts as a liability in statements of financial position, and recognise
them as an expense in profit or loss from operation over the vesting period of the shares.
5.21 Contributions to the Deposit Protection Agency and Financial Institutions Development Fund
Contributions to the Deposit Protection Agency and Financial Institutions Development Fund are recorded as expenses for
the year on an accrual basis.
5.22 Income tax
Income tax expense represents the sum of corporate income tax currently payable and deferred tax.
Current tax
Current income tax is provided in the accounts at the amount expected to be paid to the taxation authorities, based on
taxable profits determined in accordance with tax legislation.
Deferred tax
Deferred income tax is provided on temporary differences between the tax bases of assets and liabilities and their carrying
amounts at the end of each reporting period, using the tax rates enacted at the end of the reporting period.
The Bank and its subsidiaries recognises deferred tax liabilities for all taxable temporary differences while it recognises
deferred tax assets for all deductible temporary differences and tax losses carried forward to the extent that it is probable
that future taxable profit will be available against which such deductible temporary differences and tax losses carried forward
can be utilised.
At each reporting date, the Bank and its subsidiaries reviews and reduces the carrying amount of deferred tax assets to the
extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset
to be utilised.
The Bank and its subsidiaries records deferred tax directly to shareholders' equity if the tax relates to items that are recorded
directly to shareholders' equity.
5.23 Translation of foreign currency
The consolidated and separate financial statements are presented in Baht, which is also the Bank and its subsidiaries’
functional currency. Items included in the consolidated financial statements of each entity are measured using that functional
currency.
Transactions in foreign currencies are translated into Baht at the foreign exchange rate ruling at the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies and commitments, which related to forward exchange
contracts and currency swap contracts, outstanding at the end of reporting period, are translated into Baht at the exchange
rate ruling at the end of reporting period announced by the BOT.
Gains and losses on exchange rate included in profit or loss from operation.
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014 |
37
Notes to Consolidated Financial Statements
(continued)
5.24 Financial derivatives
Financial derivative contracts are recorded as commitments and the changes in fair value are recorded in profit or loss from
operation.
Outstanding financial derivative contracts are valued at fair value. At the end of reporting period, the unrealised gains or losses
on outstanding financial derivative contracts, are presented on a gross basis in the statements of financial position.
5.25 Interbank and money market items (Assets/ Liabilities)
The Bank recognised and eliminated such items in the financial statements using the Settlement Date method.
5.26 Offsetting
Financial assets and liabilities are offset and the net amount is reported in the statements of financial position when the Bank
and its subsidiaries have a legally enforceable rights to set off the recognised amount and the transactions are intended to be
settled on a net basis.
6.
Significant accounting judgments and estimates
The preparation of financial statements in conformity with financial reporting standards at times requires management to
make subjective judgments and estimates regarding matters that are inherently uncertain. However, the use of different
estimates and assumptions could affect the amounts of accounting estimate. These judgments and estimates affect reported
amounts and disclosures and actual results could differ. The significant accounting judgments and estimates are as follows:
Allowance for doubtful accounts on loans to customer and accrued interest receivables
Allowances for doubtful accounts on loans to customer and accrued interest receivables are intended to adjust the value of
loans and receivables for probable credit losses. The management uses judgment to establish reserves for estimated
losses on outstanding loans when there is any doubt about the borrower’s capacity to repay the principal and/or the interest.
The allowances for loan losses are determined through a combination of specific reviews, statistical modeling and estimates,
taking into account change in the value of collateral and current economic conditions, in accordance with the BOT’s guidelines.
Fair value of financial instruments
In determining the fair value of financial instruments that are not actively traded and for which quoted market prices are not
readily available, the management exercised judgment, using a variety of valuation techniques and models. The input to these
models is taken from observable markets, and includes consideration of liquidity, correlation and long-term volatility of
financial instruments.
Impairment of investments
The Bank and its subsidiaries treat investments as impaired when there has been a significant or prolonged decline in the
fair value below its cost or where other objective evidence of impairment exists. The determination of what is “significant”
or “prolonged” requires management’s judgment.
Recognition and derecognition of assets and liabilities
In considering whether to recognise or to derecognise assets or liabilities, the management is required to make judgment
on whether risk and rewards of those assets or liabilities have been transferred, based on their best knowledge of the current
events and arrangements.
38 | UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Notes to Consolidated Financial Statements
(continued)
Post-employment benefits under defined benefit plan
The obligation under the defined benefit plan is determined based on actuarial techniques. Such determination is made
based on various assumptions, including discount rate, future salary increase rate, staff turnover rate, mortality rate and
inflation rates. Management had to exercise judgment to determine the appropriateness of these assumptions, based on
their best knowledge of current events and arrangements.
Intangible assets
The initial recognition and measurement of other intangible assets, and subsequent impairment testing, require management
to make estimates of cash flows to be generated by the asset or the cash generating units and to choose a suitable discount
rate in order to calculate the present value of those cash flows.
Litigation
The Bank has contingent liabilities as a result of litigation. The Bank’s management has used judgment to assess of the
results of the litigation. The estimated loss has been recorded under contingent liabilities as at the end of reporting period.
Leases
In determining whether a lease is to be classified as an operating lease or financial lease, management is required to use
judgment regarding whether significant risk and rewards of ownership of the leased asset has been transferred, taking into
consideration terms and conditions of the arrangement.
Premises and equipment and depreciation
In determining depreciation of premises and equipment, the management is required to make estimates of the useful lives and
residual values of premises and equipment and to review estimate useful lives and residual values when there are any changes.
The Bank measures land and buildings at revalued amounts. Fair value from revaluation is determined by independent
appraiser using market approach for land and depreciated replacement cost approach for buildings. Such valuation is based
on certain assumptions and estimates.
In addition, the management is required to consider premises and equipment for impairment at the end of reporting period
and record impairment losses when it is determined that their recoverable amount is lower than the carrying amount. This
requires judgements regarding forecast of future revenues and expenses relating to the assets subject to the review.
Allowance for impairment of property foreclosed
The Bank assesses allowance for impairment of property foreclosed when net realisable value is below book value.
The management uses judgment in estimating impairment loss, taking into account changes in the value of asset, appraisal
value, the type and quality of asset, how long it is expected to take to dispose of the asset and changes in economic
circumstances.
Profit and loss sharing from transfer non-performing loan
In calculating profits or losses arising from the management of non-performing loans transferred to the Thai Asset Management
Corporation (TAMC), the Bank projects of the amounts expect to be received from the debtors, from collateral value or from
guarantors. The management considers these assumptions to be appropriate given the currently available information and
current situation.
Deferred tax assets
Deferred tax assets are recognised for deductible temporary differences and unused tax losses to the extent that it is probable
that taxable profit will be available against which the temporary differences and losses can be utilised. Significant management
judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing
and level of estimate future taxable profits.
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014 |
39
Notes to Consolidated Financial Statements
(continued)
7.
Regulatory rule related to capital fund
According to the BOT’s Notification Sor Nor Sor 25/2552, commercial banks are required to disclose certain additional
capital information for their position. The Bank will disclose such mandatory information as at 31 December 2014 in its
website (www.uob.co.th) by the end of April 2015. The Bank also disclosed capital adequacy and capital risk exposure
information as of 31 December 2013 since 28 April 2014.
8.
Cash
(Unit: Million Baht)
Consolidated and separate financial statements
As at 31 December
9.
2014
2013
Cash
Cheques in transit
5,885
293
4,502
281
Total
6,178
4,783
Interbank and money market items - net (Assets)
(Unit: Million Baht)
Consolidated and separate financial statements
As at 31 December
2014
Domestic items
The Bank of Thailand and Financial
Institutions Development Fund
Commercial banks
Other financial institutions
Total
Add: Accrued interest receivables
Less: Deferred revenue
Allowance for doubtful accounts
Total domestic items
Foreign items
US Dollar
Yen
EURO
Other currencies
Total
Add: Accrued interest receivables
Less: Allowance for doubtful accounts
Total foreign items
Total domestic and foreign items
2013
On demand
Term
Total
On demand
Term
Total
17,492
405
17
2,300
3,582
632
19,792
3,987
649
49,371
104
-
2,400
4,144
1,610
51,771
4,248
1,610
17,914
2
(3)
6,514
2
(20)
(37)
24,428
4
(20)
(40)
49,475
15
-
8,154
6
(30)
(42)
57,629
21
(30)
(42)
17,913
6,459
24,372
49,490
8,088
57,578
453
43
194
417
507
3
-
960
43
197
417
679
72
138
413
1,572
3
-
2,251
72
141
413
1,107
-
510
(5)
1,617
(5)
1,302
(2)
1,575
2
(6)
2,877
2
(8)
1,107
505
1,612
1,300
1,571
2,871
19,020
6,964
25,984
50,790
9,659
60,449
40 | UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Notes to Consolidated Financial Statements
(continued)
10.
Derivatives assets/liabilities
As at 31 December 2014 and 2013, the Bank has notional amounts and fair value of derivatives held for trading book classified
by type of risk is as follows:
(Unit: Million Baht)
Consolidated and separate financial statements
As at 31 December
2014
Fair Value
2013
Notional
Fair Value
Notional
Type of risk
Assets
Liabilities
amount
Assets
Liabilities
amount
Foreign exchange rates
Interest rate
Commodity derivatives
3,561
1,975
685
3,431
2,134
680
599,898
456,372
3,369
7,840
1,739
31
5,965
1,786
31
447,873
523,275
4,074
Total
6,221
6,245
1,059,639
9,610
7,782
975,222
As at 31 December 2014 and 2013, the proportion, determined based on the notional amount, of derivatives transactions
divided by type of counterparty is as follows:
(Unit: Percentage)
Consolidated and separate financial statements
As at 31 December
Counterparty
Financial institutions
Companies in the group*
Others
Total
2014
2013
82.53
8.22
9.25
100.00
86.36
4.66
8.98
100.00
* Companies in the group mean United Overseas Bank Limited and United Overseas Bank Group of Companies.
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014 |
41
Notes to Consolidated Financial Statements
(continued)
11.
Investments
11.1 Classified by types of investment
(Unit: Million Baht)
Consolidated and separate financial statements
As at 31 December
Securities for trading
Government and state enterprises securities
Total
Available-for-sale securities
Government and state enterprises securities
Marketable domestic equity securities
Marketable foreign equity securities
Total
General investments
Non-marketable domestic equity securities
Non-marketable foreign equity securities
Unit trusts
Total
Less: Allowance for impairment of securities
Total
Total investments - net
2014
2013
Fair value
Fair value
30,243
30,266
30,243
30,266
57,372
447
240
42,214
383
199
58,059
42,796
Cost
Cost
120
15
6
120
15
9
141
(89)
144
(88)
52
56
88,354
73,118
As at 31 December 2014 and 2013, the Bank classified promissory notes received from TAMC as “other receivable”,
which were presented as part of other assets, as detailed in Note 20 to the financial statements. These promissory notes
matured in 2011, as detailed in Note 14.8 to the financial statements.
As at 31 December 2014, the Bank has commitments to purchase debt securities of Baht 2,612 million (2013: Baht 3,976 million)
and commitments to sell debt securities of Baht 4,787 million (2013: Baht 3,169 million).
42 | UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Notes to Consolidated Financial Statements
(continued)
11.2 Classified by the remaining period to maturity of the debt securities
Investments in debt instruments, excluding trading debt instruments, classified by remaining maturities are as follows:
(Unit: Million Baht)
Consolidated and separate financial statement
As at 31 December 2014
Remaining within
1 year
1 - 5 years
Over 5 years
Total
Available-for-sale securities
Government and state enterprises securities
Private sector debt securities
37,254
-
20,005
-
-
57,259
-
Total
Add: Allowance for revaluation
Less: Allowance for impairment of securities
37,254
33
-
20,005
80
-
-
57,259
113
-
Total
37,287
20,085
-
57,372
(Unit: Million Baht)
Consolidated and separate financial statement
As at 31 December 2013
Remaining within
1 year
1 - 5 years
Over 5 years
Total
Available-for-sale securities
Government and state enterprises securities
Private sector debt securities
25,961
25
16,162
-
-
42,123
25
Total
Add: Allowance for revaluation
Less: Allowance for impairment of securities
25,986
23
(25)
16,162
68
-
-
42,148
91
(25)
Total
25,984
16,230
-
42,214
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014 |
43
security
Type of
Baht)
Baht)
4
(Million
(Million
4
2013
99.99
(%)
2014
99.99
(%)
2013
As at 31 December
As at 31 December
2014
Percentage of holding
Paid-up share capital
6
6
Baht)
(Million
2014
6
6
Baht)
(Million
2013
As at 31 December
Cost method
6
6*
Baht)
(Million
2014
6
6*
Baht)
(Million
2013
As at 31 December
Equity method
-
-
Baht)
(Million
2014
-
-
Baht)
(Million
2013
31 December
the years ended
recognised for
Dividend income
Consolidated financial statements
-
-
Baht)
(Million
2014
-
-
Baht)
(Million
2013
31 December
for the years ended
Shares of profit (loss)
44 | UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Nature of business
Investments in subsidiaries - net
Less: Allowance for impairment of securities
Investments in subsidiaries
Subsidiaries
UOB Bullion and Futures (Thai) Co., Ltd.
Derivatives brokerage
UOB Services Co., Ltd.
Debt Collection Business
UOB Leasing (Thai) Co., Ltd.
Liquidation
Thai Wealth Management Co., Ltd.
(formerly known as UOB Asset
Management (Thai) Co., Ltd.)
Liquidation completed
Company’s name
-
Common stock
3
175
60
4
Baht)
Baht)
175
60
4
2013
(Million
2014
-
75.00
99.99
99.99
(%)
2014
99.99
75.00
99.99
99.99
(%)
2013
As at 31 December
As at 31 December
(Million
Percentage of holding
Paid-up share capital
Common stock
Common stock
Common stock
Type of security
197
-
197
-
131
60
6
Baht)
(Million
2014
200
(25)
225
28
131
60
6
Baht)
(Million
2013
As at 31 December
(Cost method)
Investment
30
-
30
-
Baht)
(Million
2014
525
490
35
-
Baht)
(Million
2013
31 December
for the years ended
recognised
Dividend income
Separate financial statements
* The consolidated financial statements for the years ended 31 December 2014 and 2013 excluded the financial statements of UOB Leasing (Thai) Co., Ltd, which was registered under liquidation. Such investment then stated
at cost.
Investments in subsidiaries - net
Subsidiary - not included in consolidated financial statement
UOB Leasing (Thai) Co., Ltd.
Liquidation Common stock
business
Nature of
Investments in subsidiaries
(continued)
Company’s name
12.
(continued)
Notes to Consolidated Financial Statements
Notes to Consolidated Financial Statements
Notes to Consolidated Financial Statements
(continued)
On 25 July 2013, the Extraordinary General Meeting of the Shareholders of Thai Wealth Management Co., Ltd. approved an
interim dividend distribution to its shareholders at the rate of Baht 49 per share, totalling Baht 490 million, and a partial return
of capital, totalling Baht 107 million, to shareholders including the Bank, in proportion to their shareholding. The Bank received
the interim dividend distribution and the return of capital on 30 July 2013 and 29 November 2013, respectively.
13.
Entire Business Transfer/discontinued operations
In accordance with to the plan for the business restructuring of the group that is being undertaken to improve the efficiency
of the Bank’s operations, the Executive Committee of the Bank approved a plan to transfer the entire business of a subsidiary,
UOB Asset Management (Thai) Co., Ltd. to UOB Asset Management (Thailand) Co., Ltd. (formally known as ING Funds
(Thailand) Co., Ltd.), which is a company in the United Overseas Bank Group.
On 17 May 2013, UOB Asset Management (Thai) Co., Ltd. (“as transferor”) entered into an agreement to transfer all of its
business to UOB Asset Management (Thailand) Co., Ltd. (“as transferee”). This accorded with a resolution passed by the
Extraordinary General Meeting of the Shareholders of UOB Asset Management (Thai) Co., Ltd. held on 3 June 2013, whereby
UOB Asset Management (Thai) Co., Ltd. was to transfer assets, liabilities and all obligations, including its employees. The
transfer was completed on 1 July 2013 at a price of Baht 600 million, which was determined based on guidelines provided
by an independent financial advisor.
The Ministry of Finance and the Office of Securities and Exchange Commission have approved the cessation of the business
operations of UOB Asset Management (Thai) Co., Ltd. and the return of its securities and derivatives business license,
effective on 16 October 2013.
In accordance with a resolution of the Extraordinary General Meeting of Shareholders of UOB Asset Management (Thai)
Co., Ltd. on 25 July 2013, UOB Asset Management (Thai) Co., Ltd. registered the change of its name from “UOB Asset
Management (Thai) Co., Ltd. to “Thai Wealth Management Co., Ltd” with the Ministry of Commerce on 30 October 2013,
and registered its dissolution and the appointment of liquidators of its business with the Ministry of Commerce on
31 October 2013.
All proceeds from the entire business transfer have been received by Thai Wealth Management Co., Ltd. and a gain on the
entire business transfer of Baht 166 million was recognised in the consolidated financial statements for the year ended
31 December 2013.
In addition, the liquidation of Thai Wealth Management Co., Ltd was completed and registered with the Department of
Business Development, Ministry of Commerce on 28 October 2014.
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014 |
45
Notes to Consolidated Financial Statements
(continued)
Summarised financial information of Thai Wealth Management Co., Ltd. as at 1 July 2013 (the transfer date) is as follows:
(Unit: Million Baht)
Book Value
Assets
Interbank and money market items - net
Investments - net
Loans to customers and accrued interest receivables - net
Premises and equipment - net
Other Intangible assets - net
Other assets - net
453
1
1
2
2
82
Total assets
541
Liabilities
Provisions for long-term employee benefits
Accrued expenses
Other liabilities
15
77
15
Total liabilities
107
Net book value
Transfer price
434
600
Gain on entire business transfer
166
Interbank and money market items included deposits of Thai Wealth Management Co., Ltd. with the Bank amounting to
Baht 432 million.
46 | UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Notes to Consolidated Financial Statements
(continued)
The operating result of Thai Wealth Management Co., Ltd. for the year ended 31 December 2013 was separately presented
under “Profit from discontinued operations” and “Other comprehensive income from discontinued operations” in the
consolidated statements of comprehensive income for the year ended 31 December 2013. Detail is as follows:
(Unit: Million Baht)
For the year ended
31 December 2013
Consolidated statement of comprehensive income
Interest income
Interest expenses
7
-
Net interest income
7
Fees and service income
Fees and service expenses
376
155
Net fees and service income
221
Gain on entire business transfer
Other operating income
166
1
Total operating income
395
Other operating expenses
Employee’s expenses
Premises and equipment expenses
Other expenses
90
8
34
Total other operating expenses
132
Profit before income tax expenses
Income tax
263
21
Net profit after tax from discontinued operations
242
Other comprehensive income
Actuarial gains on defined benefit plans
Income tax relating to components of other comprehensive income
1
-
Other comprehensive income from discontinued operations
1
Total comprehensive income from discontinued operations
243
Changes of operating assets and operating liabilities of Thai Wealth Management Co., Ltd. which included in consolidated
cash flows statements for the year ended 31 December 2013 are as follows:
(Unit: Million Baht)
2013
Operating assets increase
- Interbank and money market items
- Other assets
(386)
(63)
(449)
Operating liabilities decrease
- Accrued expense
- Other liabilities
(69)
(27)
(96)
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014 |
47
Notes to Consolidated Financial Statements
(continued)
Cash flow information of Thai Wealth Management for the year ended 31 December 2013 is as follows:
(Unit: Million Baht)
2013
Net cash used in operating activities
Net cash provided by investing activities
14.
(3)
3
Loans to customers and accrued interest receivables - net
14.1 Classified by loan type
(Unit: Million Baht)
Consolidated and separate financial statements
As at 31 December
2014
2013
Overdrafts
Loans
Trade bills
Hire-purchase receivables
Financial lease receivables
Others
Less: Deferred revenue
17,322
188,747
55,970
1,316
2,831
388
(342)
17,296
170,543
61,814
1,888
3,485
402
(496)
Total loans to customers net of deferred revenue
Add: Accrued interest receivables
266,232
782
254,932
755
Total loans to customers net of deferred revenue and accrued interest receivables
Less: Allowance for doubtful accounts
1. The BOT’s minimum requirement provision
- Individual approach
- Collective approach
2. Provision in excess of the BOT’s minimum rates required
267,014
255,687
Total loans to customers and accrued interest receivables - net
259,002
(3,614)
(454)
(3,944)*
(3,059)
(346)
(3,526)*
248,756
* Allowance for doubtful accounts includes a reserve for cyclical business factors, including economic factors, and other risk that may affect the quality of assets.
48 | UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Notes to Consolidated Financial Statements
(continued)
14.2 Classified by currencies and residential status of debtors
(Unit: Million Baht)
Consolidated and separate financial statements
As at 31 December
2014
2013
Domestic
Overseas
Total
Domestic
Overseas
Total
Baht
US Dollar
Other currencies
251,840
12,526
826
180
860
-
252,020
13,386
826
236,854
16,459
485
182
952
-
237,036
17,411
485
Total loans, net of deferred revenue
265,192
1,040
266,232
253,798
1,134
254,932
14.3 Classified by types of business and loan classification
(Unit: Million Baht)
Consolidated and separate financial statement
As at 31 December 2014
Agriculture and mining
Manufacturing and commerce
Real estate and construction
Public utilities and services
Housing loans
Others
Total loans, net of deferred revenue
Pass
Special
mention
Sub-standard
Doubtful
Doubtful
of loss
Total
1,070
75,244
19,255
28,909
87,781
43,450
5
711
781
705
905
778
357
266
195
265
326
106
119
314
318
54
2,353
479
148
1,211
127
1,129
78,771
20,900
29,957
90,476
44,999
255,709
3,885
1,409
857
4,372
266,232
(Unit: Million Baht)
Consolidated and separate financial statement
As at 31 December 2013
Agriculture and mining
Manufacturing and commerce
Real estate and construction
Public utilities and services
Housing loans
Others
Total loans, net of deferred revenue
Pass
Special
mention
Sub-standard
Doubtful
Doubtful
of loss
Total
1,998
78,122
19,364
31,159
74,415
40,633
6
1,825
282
645
565
656
423
1
350
274
273
162
224
242
67
1,434
329
123
1,261
99
2,071
81,966
19,976
32,277
76,739
41,903
245,691
3,979
1,321
628
3,313
254,932
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014 |
49
Notes to Consolidated Financial Statements
(continued)
14.4 Classified by loan classification in accordance with the Notification of the BOT
(Unit: Million Baht)
Consolidated and separate financial statement
As at 31 December 2014
Loans to
customers and
accrued interest
receivables
Other
claims
Total
Net balance
used in
calculate
allowance for
doubtful
accounts (1)
Percentage
of allowance
for doubtful
account
set up
Allowance
for
doubtful
accounts
(%)
The BOT’s minimum requirement
provision
Pass
Special mention
Sub-standard
Doubtful
Doubtful of loss
Provision in excess of the BOT’s
minimum rates required (2)
256,454
3,922
1,409
857
4,372
-
-
-
-
3,944
Total
267,014
30
267,044
91,247
8,021
(1)
(2)
19
1
4
1
5
256,473
3,923
1,413
858
4,377
86,844
1,219
802
350
2,032
1
2
100
100
100
869
24
802
350
2,032
Net balance used in calculate allowance for doubtful accounts for pass and special mention loans is debt balance excluded accrued interest receivable net of
collateral. For sub-standard, doubtful and doubtful of loss loans, that is debt balance and accrued interest receivables, net of deferred revenue, remaining after
deducting the present value of expected future cash flows from debt collection or from collateral disposals.
Allowance for doubtful accounts includes a reserve for cyclical business factors, including economic factors, and other risk that may affect the quality of assets.
(Unit: Million Baht)
Consolidated and separate financial statement
As at 31 December 2013
Loans to
customers and
accrued interest
receivables
Other
claims
Total
Net balance
used in
calculate
allowance for
doubtful
accounts (1)
Percentage
of allowance
for doubtful
account
set up
Allowance
for
doubtful
accounts
(%)
The BOT’s minimum requirement
provision
Pass
Special mention
Sub-standard
Doubtful
Doubtful of loss
Provision in excess of the BOT’s
minimum rates required (2)
246,418
4,007
1,321
628
3,313
15
2
2
1
5
246,433
4,009
1,323
629
3,318
89,499
1,996
612
257
1,610
-
-
-
-
3,526
Total
255,687
25
255,712
93,974
6,939
(1)
(2)
1
2
100
100
100
894
40
612
257
1,610
Net balance used in calculate allowance for doubtful accounts for pass and special mention loans is debt balance excluded accrued interest receivable net of
collateral. For sub-standard, doubtful and doubtful of loss loans, that is debt balance and accrued interest receivables, net of deferred revenue, remaining after
deducting the present value of expected future cash flows from debt collection or from collateral disposals.
Allowance for doubtful accounts includes a reserve for cyclical business factors, including economic factors, and other risk that may affect the quality of assets.
50 | UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Notes to Consolidated Financial Statements
(continued)
As at 31 December 2014, loan provisions mentioned above include provision for other claims, amounting to Baht 9 million
(2013: Baht 8 million).
As at 31 December 2014 and 2013 the Bank has classified unsecured consumer loan in accordance with the Notification of
the BOT for non-performing loans (excluding receivables classified as pass and special mention) using a collective approach,
as follows:
(Unit: Million Baht)
Consolidated and separate financial statement
As at 31 December 2014
Unsecured
consumer loans
The range of
provision (%)
Provision
amount
0 - 119
120 - 180
282
322
73 - 94
73 - 100
211
243
Total
604
Overdue (Days)
454
(Unit: Million Baht)
Consolidated and Separate financial statement
As at 31 December 2013
Unsecured
consumer loans
The range of
provision (%)
Provision
amount
0 - 119
120 - 180
231
232
73 - 94
73 - 100
173
173
Total
463
Overdue (Days)
346
14.5 Hire-purchase/finance lease receivables
As at 31 December 2014, the Bank has receivables under hire-purchase agreements and financial leases net of deferred
revenue amounting to Baht 3,825 million (2013: Baht 4,894 million), mostly comprising hire-purchase agreements and financial
leases for vehicles and machines. The terms of the agreements are generally between 3 - 5 years and most interest is
charged at a fixed rate.
(Unit: Million Baht)
As at 31 December 2014
Amounts due under lease agreement
Less than
5 years
1 - 5 years
Over
5 years
Non
performing
loans
Total
Gross investment in hire-purchase/ finance leases
Less: Deferred revenue*
264
(6)
3,780
(305)
60
(7)
43
(4)
4,147
(322)
Present value of minimum lease payments receivables
258
3,475
53
39
3,825
Less: Allowance for doubtful accounts
(76)
Net hire-purchase/finance lease receivables
3,749
* After deduction of commission and deferred initial direct costs of hire-purchase (if any)
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014 |
51
Notes to Consolidated Financial Statements
(continued)
(Unit: Million Baht)
As at 31 December 2013
Amounts due under lease agreement
Less than
1 year
1-5
years
Over
5 years
Non
performing
loans
Total
Gross investment in hire-purchase/finance leases
Less: Deferred revenue*
306
(7)
4,948
(459)
27
(5)
92
(8)
5,373
(479)
Present value of minimum lease payments receivables
299
4,489
22
84
4,894
Less: Allowance for doubtful accounts
(132)
Net hire-purchase/finance lease receivables
4,762
* After deduction of commission and deferred initial direct costs of hire-purchase (if any)
14.6 Non-accrual loans
The Bank had non-accrual loans, according to the BOT’s criteria (NPLs and restructured NPLs under current period)
as follows:
(Unit: Million Baht)
Consolidated and separate financial statements
As at 31 December
Non-accrual loans*
Percentage of total loans**
2014
2013
6,638
2.31
5,262
1.69
* Principal only
** Including interbank and money market loans
14.7 Troubled debt restructuring
During the years ended 31 December 2014 and 2013 the Bank entered into troubled debt restructuring agreements with
debtors. The number of debtors and their debt balances before restructuring can be summarised below.
(Unit: Million Baht)
Consolidated and separate financial statements
For the years ended 31 December
Debt balances before restructuring*
Total number of customers
* Principal only
52 | UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
2014
2013
3,111
5,233
1,183
3,027
Notes to Consolidated Financial Statements
(continued)
Detail of the restructured debtors during the years ended 31 December 2014 and 2013 referred to above can be classified
by method of troubled debt restructuring as follows:
(Unit: Million Baht)
Consolidated and separate financial statement
For the year ended 31 December 2014
Number of
customers
subject to
restructuring
Debt
balances
before
restructuring
Type of
assets
Modification of terms
5,233
3,111
-
Total
5,233
3,111
Type of restructuring
Debt
balances
after
restructuring
Fair value
of assets
-
3,111
-
3,111
(Unit: Million Baht)
Consolidated and separate financial statement
For the year ended 31 December 2013
Number of
customers
subject to
restructuring
Debt
balances
before
restructuring
Type of
assets
Fair value
of assets
Debt
balances
after
restructuring
Asset swap for settlement
Modification of terms
3
3,024
320
863
Cash
-
320
-
863
Total
3,027
1,183
320
863
Type of restructuring
The Bank recorded losses on restructuring for the year in relation to certain particular customers as utilisation of allowance
for doubtful accounts rather than charging to profit or loss from operation since the Bank had already fully provided allowance
for those loans.
The debts restructured by means of modification of the term of repayment referred to above during the years ended
31 December 2014 and 2013 can be classified by the term of repayment under the restructuring agreement as follows:
Consolidated and separate financial statement
For the year ended 31 December 2014
Debt balances (Million Baht)
Number of
debtors
Before
restructuring
After
restructuring
Term of repayment according to the restructuring agreements:
Not more than 5 years
5 - 10 years
10 - 15 years
More than 15 years
4,945
90
136
62
2,250
345
367
149
2,250
345
367
149
Total
5,233
3,111
3,111
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014 |
53
Notes to Consolidated Financial Statements
(continued)
Consolidated and separate financial statement
For the year ended 31 December 2013
Debt balances (Million Baht)
Number of
debtors
Before
restructuring
After
restructuring
Term of repayment according to the restructuring agreements:
Not more than 5 years
5 - 10 years
10 - 15 years
More than 15 years
3,008
9
3
4
594
252
9
8
594
252
9
8
Total
3,024
863
863
As at 31 December 2014 and 2013, the troubled debtors restructuring for which the Bank completed the restructuring can
be summarised as follows:
(Unit: Million Baht)
Consolidated and separate financial statements
Balance of restructured debtors as at 31 December 2014
Balance of restructured debtors as at 31 December 2013
Number of
debtors
Debt balances
after
restructuring
12,023
11,276
11,493
9,640
As at 31 December 2014, the Bank has committed additional funds to restructured debtors amounting to Baht 142 million
(2013: Baht 109 million).
14.8 Sale of non-performing assets to Thai Asset Management Corporation (“TAMC”)
On 12 October 2001, the Bank entered into an agreement with the Thai Asset Management Corporation (TAMC) to transfer
non-performing loans (NPL) in accordance with the Emergency Decree on the Thai Asset Management Corporation B.E.
2544. Under the agreement, the Bank was to receive a ten-year non-transferable promissory note with interest rate avaled
by the Financial Institutions Development Fund and the TAMC and the Bank are jointly responsible for any profits or losses
arising from managing the impaired assets in accordance with the conditions specified in the agreement.
On 8 June 2013, TAMC was liquidated and transferred its remaining assets and liabilities, including all TAMC’s accounting
books and documents, to the Ministry of Finance, which is to manage them.
Throughout the time that the impaired assets have been managed by TAMC, the Bank and TAMC have been involved in a dispute
over the transfer price adjustment requested by TAMC, amounting to Baht 1,665 million. Currently, the dispute is being processed
by the Supreme Court. However, the Bank and the Ministry of Finance are currently in negotiations to conclude the dispute.
As at 31 December 2014 and 2013, the balance of the promissory notes received from TAMC (before the transfer price adjustment
proposed by TAMC) was Baht 2,864 million. These notes matured in the year 2011 and were presented in the statements of
financial position under "Other receivable". The management of the Bank has set aside provisions for contingent losses from the
gain/loss sharing from TAMC’s management of the impaired assets totalling Baht 1,900 million, which is presented as deductions
from other receivable in the statements of financial position. Since the promissory notes matured, TAMC has deposited with the
Bank a balance equal to the notes together with interest, amounting to Baht 3,110 million, in accordance with the redemption
method proposed by TAMC. However, the Bank treats these amounts as normal deposits.
54 | UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Notes to Consolidated Financial Statements
(continued)
15.
Allowance for doubtful accounts
(Unit: Million Baht)
Consolidated and separate financial statement
For the year ended 31 December 2014
Pass
Special
mention
Substandard
Doubtful
Doubtful
of loss
Provision in
excess of the
BOT’s minimum
rates required
Total
Beginning balance
894
40
610
256
1,605
3,526
6,931
Doubtful accounts
(30)
(16)
189
93
2,502
418
3,156
Transferred from allowance for
doubtful accounts of loans
5
-
-
-
-
-
5
Bad debts written off
to financial institution
-
-
-
-
(2,076)
-
(2,076)
Others
-
-
-
-
(4)
-
(4)
869
24
799
349
2,027
Ending balance
3,944*
8,012
* Allowance for doubtful accounts includes a reserve for cyclical business factors, including economic factors, and other risk that may affect the quality of assets.
(Unit: Million Baht)
Consolidated and separate financial statement
For the year ended 31 December 2013
Pass
Special
mention
Substandard
Doubtful
Doubtful
of loss
Provision in
excess of the
BOT’s minimum
rates required
Beginning balance
722
31
438
187
2,007
1,816
5,201
Doubtful accounts
208
9
172
69
936
1,710
3,104
(36)
-
-
-
-
-
(36)
-
-
-
-
(1,350)
-
(1,350)
Total
Transferred to allowance for
doubtful accounts of loans
to financial institution
Bad debts written off
Others
Ending balance
-
-
-
-
12
894
40
610
256
1,605
3,526*
12
6,931
* Allowance for doubtful accounts includes a reserve for cyclical business factors, including economic factors, and other risk that may affect the quality of assets.
16.
Properties foreclosed - net
Properties foreclosed represent properties obtained from debtors as a result of debt restructuring or properties obtained as
a result of a successful bid for the mortgaged assets of debtors at auction and including the owned closed branch's premises
and awaiting for sale.
Under the debt restructuring agreements, in cases the debtors restructure their debts by means of a debt/asset swap, the
Bank grants buy-back rights or first refusal rights to certain debtors for a certain period, at prices as agreed in the debt
restructuring agreements. The buy-back prices are normally agreed to be the transfer prices of the properties on the
restructuring dates or plus interest.
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014 |
55
Notes to Consolidated Financial Statements
(continued)
As at 31 December 2014 and 2013, the details of properties foreclosed are as follows:
(Unit: Million Baht)
Consolidated and separate financial statement
For the year ended 31 December 2014
Beginning
balance
Addition
Assets transferred in settlement of debts and
assets from bidding
Immovable
Movable
3,237
-
157
-
(275)
-
3,119
-
Total
Others
3,237
-
157
-
(275)
-
3,119
-
Total properties foreclosed
Less: Allowance for impairment
3,237
(1,348)
157
-
(275)
3
3,119
(1,345)
Properties foreclosed - net
1,889
157
(272)
1,774
Type of properties foreclosed
Ending
balance
Disposal
(Unit: Million Baht)
Consolidated and separate financial statement
For the year ended 31 December 2013
Beginning
balance
Addition
Assets transferred in settlement of debts and
assets from bidding
Immovable
Movable
3,690
-
184
-
(637)
-
3,237
-
Total
Others
3,690
2
184
-
(637)
(2)
3,237
-
Total properties foreclosed
Less: Allowance for impairment
3,692
(1,823)
184
-
(639)
475
3,237
(1,348)
Properties foreclosed - net
1,869
184
(164)
1,889
Type of properties foreclosed
Ending
balance
Disposal
During the year ended 31 December 2013, the Bank reviewed the adequacy of the allowance for impairment and as a result
reversed the allowance for impairment of properties foreclosed amounting of Baht 400 million.
Immovable assets foreclosed classified by external and internal appraisers as at 31 December 2014 and 2013 consist of the
following:
(Unit: Million Baht)
Consolidated and Separate financial statements
As at 31 December
2014
2013
Foreclosed assets - immovable assets
Appraised by external appraisers
Appraised by internal appraisers
3,067
52
3,048
189
Total
3,119
3,237
56 | UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Notes to Consolidated Financial Statements
(continued)
17.
Premises and equipment
(Unit: Million Baht)
Consolidated financial statement
For the year ended 31 December 2014
Land
Premises
Equipment
Assets under
installation
Total
Cost
Beginning balance
Acquisition
Transfer in (out)
Disposal and written off
1,358
540
(8)
-
1,425
(78)
-
4,608
213
115
(232)
40
90
(115)
-
7,431
843
(86)
(232)
Ending balance
1,890
1,347
4,704
15
7,956
Increase from revaluation
Beginning balance
Transfer out
1,682
(19)
331
(23)
-
-
2,013
(42)
Ending balance
1,663
308
-
-
1,971
Accumulated depreciation
Beginning balance
Depreciation charged for the year
Transfer out
Disposal and written off
-
(904)
(28)
37
-
(3,286)
(309)
226
-
(4,190)
(337)
37
226
Ending balance
-
(895)
(3,369)
Impairment loss
Beginning balance
Addition
Transfer out
(53)
-
(79)
(5)
2
-
-
(132)
(5)
2
Ending balance
(53)
(82)
-
-
(135)
Net book value
Beginning balance
2,987
773
1,322
40
5,122
Ending balance
3,500
678
1,335
15
5,528
(4,264)
Depreciation charge included in profit or loss from operation for the years ended 31 December:
2013
340
2014
337
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014 |
57
Notes to Consolidated Financial Statements
(continued)
(Unit: Million Baht)
Consolidated financial statement
For the year ended 31 December 2013
Land
Premises
Equipment
Assets under
installation
Total
Cost
Beginning balance
Acquisition
Transfer in (out)
Disposal and written off
Decrease from transfer of a subsidiary company
1,382
(24)
-
1,444
(19)
-
4,542
206
134
(254)
(20)
35
139
(134)
-
7,403
345
(43)
(254)
(20)
Ending balance
1,358
1,425
4,608
40
7,431
Increase from revaluation
Beginning balance
Transfer out
1,728
(46)
331
-
-
-
2,059
(46)
Ending balance
1,682
331
-
-
2,013
Accumulated depreciation
Beginning balance
Depreciation charged for the year
Transfer out
Disposal and written off
Decrease from transfer of a subsidiary company
-
(884)
(30)
10
-
(3,229)
(310)
235
18
-
(4,113)
(340)
10
235
18
Ending balance
-
(904)
(3,286)
-
(4,190)
Impairment loss
Beginning balance
Transfer out
(54)
1
(83)
4
-
-
(137)
5
Ending balance
(53)
(79)
-
-
(132)
Net book value
Beginning balance
3,056
808
1,313
35
5,212
Ending balance
2,987
773
1,322
40
5,122
Depreciation charge included in profit or loss from operation for the years ended 31 December:
2012
328
2013
340
58 | UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Notes to Consolidated Financial Statements
(continued)
(Unit: Million Baht)
Separate financial statement
For the year ended 31 December 2014
Land
Premises
Equipment
Assets under
installation
Total
Cost
Beginning balance
Acquisition
Transfer in (out)
Disposal and written off
1,358
540
(8)
-
1,425
(78)
-
4,588
212
115
(232)
40
90
(115)
-
7,411
842
(86)
(232)
Ending balance
1,890
1,347
4,683
15
7,935
Increase from revaluation
Beginning balance
Transfer out
1,682
(19)
331
(23)
-
-
2,013
(42)
Ending balance
1,663
308
-
-
1,971
Accumulated depreciation
Beginning balance
Depreciation charged for the year
Transfer out
Disposal and written off
-
(904)
(28)
37
-
(3,271)
(308)
226
-
(4,175)
(336)
37
226
Ending balance
-
(895)
(3,353)
-
(4,248)
Impairment loss
Beginning balance
Addition
Transfer out
(53)
-
(79)
(5)
2
-
-
(132)
(5)
2
Ending balance
(53)
(82)
-
-
(135)
Net book value
Beginning balance
2,987
773
1,317
40
5,117
Ending balance
3,500
678
1,330
15
5,523
Depreciation charge included in profit or loss from operation for the years ended 31 December:
2013
336
2014
336
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014 |
59
Notes to Consolidated Financial Statements
(continued)
(Unit: Million Baht)
Separate financial statement
For the year ended 31 December 2013
Land
Premises
Equipment
Assets under
installation
Total
Cost
Beginning balance
Acquisition
Transfer in (out)
Disposal and written off
1,382
(24)
-
1,444
(19)
-
4,488
204
134
(238)
35
139
(134)
-
7,349
343
(43)
(238)
Ending balance
1,358
1,425
4,588
40
7,411
Increase from revaluation
Beginning balance
Transfer out
1,728
(46)
331
-
-
-
2,059
(46)
Ending balance
1,682
331
-
-
2,013
Accumulated depreciation
Beginning balance
Depreciation charged for the year
Transfer out
Disposal and written off
-
(884)
(30)
10
-
(3,190)
(306)
225
-
(4,074)
(336)
10
225
Ending balance
-
(904)
(3,271)
-
(4,175)
Impairment loss
Beginning balance
Transfer out
(54)
1
(83)
4
-
-
(137)
5
Ending balance
(53)
(79)
-
-
(132)
Net book value
Beginning balance
3,056
808
1,298
35
5,197
Ending balance
2,987
773
1,317
40
5,117
Depreciation charge included in profit or loss from operation for the years ended 31 December:
2012
323
2013
336
As at 31 December 2014, certain premises and equipment items of the Bank and its subsidiaries have been fully depreciated
but are still in use. The gross carrying amount, before deducting accumulated depreciation, of those assets amounted to
Baht 2,213 million (2013: Baht 2,309 million). The Bank only: Baht 2,201 million (2013: Baht 2,305 million).
During the year, the Bank closed certain branches and transferred them to property foreclosed. The net book values of the
transferred assets amounted to Baht 90 million (2013: Baht 74 million).
60 | UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Notes to Consolidated Financial Statements
(continued)
Revaluation surplus
This represents surplus arising from revaluation of land and premises
(Unit: Million Baht)
Consolidated and separatefinancial statements
For the years ended 31 December
2014
2013
Beginning balance
Amortisation charged for the year
Transferred out during the year
2,024
(13)
(47)
2,044
(15)
(5)
Ending balance
1,964
2,024
The revaluation surplus on assets can neither be offset against deficit nor used for dividend distribution.
18.
Other intangible assets
As at 31 December 2014 and 2013, the intangible assets are as follows:
(Unit: Million Baht)
Consolidated financial statement
For the year ended 31 December 2014
Application
software
Assets under
installation
Others
Total
Cost
Beginning balance
Acquisition
Transfer in (out)
2,177
126
25
1
40
(25)
2
-
2,180
166
-
Ending balance
2,328
16
2
2,346
Accumulated amortisation
Beginning balance
Amortisation for the year
(1,286)
(169)
-
-
(1,286)
(169)
Ending balance
(1,455)
-
-
(1,455)
Net book value
Beginning balance
891
1
2
894
Ending balance
873
16
2
891
5 - 10
-
-
Remaining useful lives (years)
Amortisation charge included in profit or loss from operation for the years ended 31 December:
2013
171
2014
169
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014 |
61
Notes to Consolidated Financial Statements
(continued)
(Unit: Million Baht)
Consolidated financial statement
For the year ended 31 December 2013
Application
software
Assets under
installation
Others
Total
Cost
Beginning balance
Acquisition
Transfer in (out)
Decrease from transfer of a subsidiary company
2,001
176
11
(11)
5
7
(11)
-
2
-
2,008
183
(11)
Ending balance
2,177
1
2
2,180
Accumulated amortisation
Beginning balance
Amortisation for the year
Decrease from transfer of a subsidiary company
(1,124)
(171)
9
-
-
(1,124)
(171)
9
Ending balance
(1,286)
-
-
(1,286)
877
5
2
884
891
1
2
894
5 - 10
-
-
Net book value
Beginning balance
Ending balance
Remaining useful lives (years)
Amortisation charge included in profit or loss from operation for the years ended 31 December:
2012
165
2013
171
62 | UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Notes to Consolidated Financial Statements
(continued)
(Unit: Million Baht)
Separate financial statement
For the year ended 31 December 2014
Application
software
Assets under
installation
Others
Total
Cost
Beginning balance
Acquisition
Transfer in (out)
2,160
126
25
1
40
(25)
2
-
2,163
166
-
Ending balance
2,311
16
2
2,329
Accumulated amortisation
Beginning balance
Amortisation for the year
(1,277)
(168)
-
-
(1,277)
(168)
Ending balance
(1,445)
-
-
(1,445)
883
1
2
886
866
16
2
884
5 - 10
-
-
Net book value
Beginning balance
Ending balance
Remaining useful lives (years)
Amortisation charge included in profit or loss from operation for the years ended 31 December:
2013
169
2014
168
(Unit: Million Baht)
Separate financial statement
For the year ended 31 December 2013
Application
software
Assets under
installation
Others
Total
Cost
Beginning balance
Acquisition
Transfer in (out)
1,974
175
11
5
7
(11)
2
-
1,981
182
-
Ending balance
2,160
1
2
2,163
Accumulated amortisation
Beginning balance
Amortisation for the year
(1,108)
(169)
-
-
(1,108)
(169)
Ending balance
(1,277)
-
-
(1,277)
Net book value
Beginning balance
866
5
2
873
Ending balance
883
1
2
886
5 - 10
-
-
Remaining useful lives (years)
Amortisation charge included in profit or loss from operation for the years ended 31 December:
2012
163
2013
169
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014 |
63
Notes to Consolidated Financial Statements
(continued)
As at 31 December 2014, certain intangible assets of the Bank and its subsidiaries have been fully amortised but are still
in use. The gross carrying amount, before deducting accumulated amortisation, of those assets amounted to Baht 713 million
(2013: Baht 465 million). The Bank only: Baht 713 million (2013: Baht 464 million).
18.
Deferred Tax
The following table shows major components of deferred tax assets and deferred tax liabilities as at 31 December 2014 and
2013.
(Unit: Million Baht)
Consolidated financial statements
Statements
of financial
position
As at 31 December
Deferred tax assets on:
Allowance for doubtful accounts
Allowance for impairment of
properties foreclosed
Allowance for impairment and
revaluation of assets
Allowance for impairment and
revaluation of investments
Provisions for long-term employee
benefits
Provisions for other liabilities
Unrealised loss on financial
derivatives
Other receivables
Write off
Loss carried forward
Others
Deferred tax liabilities on:
Revaluation surplus on assets
Revaluation surplus on investments
Unrealised gain on financial
derivatives
Others
Deferred tax - net
Deferred tax - expense (income)
Separate financial statements
Statements of
comprehensive
income for the
years ended
31 December
Statements
of financial
position
As at 31 December
Statements of
comprehensive
income for the
years ended
31 December
2014
2013
2014
2013
2014
2013
2014
2013
1
47
46
-
1
47
46
-
271
270
(1)
94
271
270
(1)
94
25
25
-
2
25
25
-
2
92
93
1
5
92
93
1
5
327
55
298
53
(2)
10
325
55
297
53
1
(2)
10
383
1
231
385
17
102
221
2
17
101
(10)
231
66
216
(102)
(12)
383
231
385
17
99
221
2
17
99
(10)
231
66
216
(99)
(13)
1,386
1,511
154
510
1,383
1,507
153
512
393
116
405
91
(3)
-
(3)
-
393
116
405
91
(3)
-
(3)
-
103
364
99
(364)
4
364
9
103
364
99
(364)
4
364
9
612
959
(363)
370
612
959
(363)
370
774
552
771
548
(210)
882
(209)
64 | UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
880
Notes to Consolidated Financial Statements
(continued)
Movements in the deferred tax during the years ended 31 December 2014 and 2013 are as follows:
(Unit: Million Baht)
Consolidated financial statements
Separate financial statements
For the years ended 31 December
For the years ended 31 December
2014
2013
2014
2013
Beginning balance
552
1,405
548
1,400
Charge to profit or loss from operation
209
(880)
210
(882)
10
4
10
4
Charge to other comprehensive income
3
26
3
26
From discontinued operations
-
(3)
-
-
774
552
771
548
Charge to shareholders’ equity
Ending balance
The amounts of income tax relating to each component of other comprehensive income for the years ended 31 December
2014 and 2013 are as follows:
(Unit: Million Baht)
Consolidated and separate financial statements
For the years ended 31 December
2014
Deferred tax relating to revaluation surplus on investments
Deferred tax relating to actuarial losses on defined benefit plans
2013
(26)
29
(1)
27
3
26
Income tax effects relating to components of other comprehensive income
(Unit: Million Baht)
Consolidated financial statements
For the years ended 31 December
2014
Before tax
amount
Increase in surplus on change in value
of investments
Actuarial losses on defined benefit plans
2013
Tax benefit
(expense)
Net of tax
amount
Before tax
amount
Tax benefit
(expense)
Net of tax
amount
127
(145)
(26)
29
101
(116)
3
(132)
(1)
27
2
(105)
(18)
3
(15)
(129)
26
(103)
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014 |
65
Notes to Consolidated Financial Statements
(continued)
(Unit: Million Baht)
Separate financial statements
For the years ended 31 December
2014
Before tax
amount
Increase in surplus on change in value
of investments
Actuarial losses on defined benefit plans
20.
2013
Tax benefit
(expense)
Net of tax
amount
Before tax
amount
Tax benefit
(expense)
Net of tax
amount
127
(144)
(26)
29
101
(115)
3
(133)
(1)
27
2
(106)
(17)
3
(14)
(130)
26
(104)
Other assets
(Unit: Million Baht)
Consolidated financial statements
Separate financial statements
As at 31 December
As at 31 December
2014
2013
2014
2013
Accrued income
645
357
646
354
Suspense debtors
185
305
185
305
Prepaid and deferred expenses
395
242
387
238
Deposits
379
208
374
205
Leasehold right - net
Other receivable - TAMC
Others
21.
67
83
67
83
3,110
3,110
3,110
3,110
125
223
124
222
Total
4,906
4,528
4,893
4,517
Less: Allowance for impairment
(1,939)
(1,955)
(1,939)
(1,955)
Other assets - net
2,967
2,573
2,954
2,562
Classified assets
(Unit: Million Baht)
Separate financial statement
As at 31 December 2014
Investments
Loans(1)
Properties
foreclosed
Other assets
Total
Classifications
Pass
Special mention
Sub-standard
Doubtful
Doubtful of loss
99
276,525
3,892
1,409
857
4,372
851
19
1
4
1
1,934
276,544
3,893
1,413
858
7,256
Total
99
287,055
851
1,959
289,964
(1)
Including interbank and money market loans.
66 | UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Notes to Consolidated Financial Statements
(continued)
(Unit: Million Baht)
Separate financial statement
As at 31 December 2013
Investments
Loans(1)
Properties
foreclosed
Other assets
Total
Classifications
Pass
Special mention
Sub-standard
Doubtful
Doubtful of loss
140
301,488
3,979
1,321
628
3,313
581
15
2
2
1
1,953
301,503
3,981
1,323
629
5,987
Total
140
310,729
581
1,973
313,423
(1)
22.
Including interbank and money market loans.
Deposits
22.1 Classified by types of deposits
(Unit: Million Baht)
Consolidated financial statements
Separate financial statements
As at 31 December
As at 31 December
2014
2013
2014
2013
Current accounts
7,662
7,208
7,662
7,208
Savings accounts
147,243
104,461
147,277
104,522
Fixed deposits
113,572
122,972
113,744
123,138
Total
268,477
234,641
268,683
234,868
22.2 Classified by currencies and residential status of depositors
(Unit: Million Baht)
Consolidated financial statements
As at 31 December
2014
2013
Domestic
Overseas
Total
Domestic
Overseas
Total
Baht
US Dollar
Others
253,489
7,119
291
6,875
348
355
260,364
7,467
646
225,367
1,966
174
6,422
301
411
231,789
2,267
585
Total
260,899
7,578
268,477
227,507
7,134
234,641
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014 |
67
Notes to Consolidated Financial Statements
(continued)
(Unit: Million Baht)
Separate financial statements
As at 31 December
2014
23.
2013
Domestic
Overseas
Total
Domestic
Overseas
Total
Baht
US Dollar
Others
253,695
7,119
291
6,875
348
355
260,570
7,467
646
225,594
1,966
174
6,422
301
411
232,016
2,267
585
Total
261,105
7,578
268,683
227,734
7,134
234,868
Interbank and money market items (Liabilities)
(Unit: Million Baht)
Consolidated and separate financial statements
As at 31 December
2014
Domestic items
The Bank of Thailand and Financial
Institutions Development Fund
Commercial banks
Specific financial institutions
Other financial institutions
Total domestic items
Foreign items
US Dollar
Other currencies
Total foreign items
Total domestic and foreign items
24.
2013
On demand
Term
Total
On demand
Term
Total
4,529
607
11,702
1,142
638
888
1,142
4,529
1,245
12,590
1,017
1,400
7,779
1,253
5,600
638
178
1,253
6,617
2,038
7,957
16,838
2,668
19,506
10,196
7,669
17,865
10,967
1,130
30,326
-
41,293
1,130
19,661
660
51,845
-
71,506
660
12,097
30,326
42,423
20,321
51,845
72,166
28,935
32,994
61,929
30,517
59,514
90,031
Debt issued and Borrowings
As at 31 December 2014 and 2013, debt issued and borrowings, comprising subordinated debentures, senior debentures
and domestic borrowings, are classified by type of securities, maturity and interest rate as follows:
(Unit: Million Baht)
Consolidated and separate financial statement
As at 31 December 2014
Type
Subordinated Debentures
Senior Debentures
Maturity
25 Mar 2023
22 May 2016 - 22 May 2017
Interest rate
per annum
(%)
Floating rate
LIBOR + 1.76
2.92 - 3.24
Total
68 | UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Currency
Domestic
Amount
Foreign
Total
USD
-
5,604
5,604
THB
6,000
-
6,000
6,000
5,604
11,604
Notes to Consolidated Financial Statements
(continued)
(Unit: Million Baht)
Consolidated and separate financial statements
As at 31 December 2013
Type
Maturity
Interest rate
per annum
Currency
Domestic
Amount
Foreign
Total
USD
-
5,578
5,578
THB
THB
22,440
1
-
22,440
1
22,441
5,578
28,019
(%)
Subordinated Debentures
Bills of exchange
Term loan agreement
25 Mar 2023
27 Jun 2014 - 11 Aug 2014
4 Sep 2014
Total
Floating rate
LIBOR + 1.76
5
-
Subordinated debentures
On 25 March 2013, the Bank issued Subordinated Debenture No.1/2013, amounting to USD 170 million, to United Overseas
Bank Limited. The debentures have a tenor of 10 years and bear interest at a floating rate equal to 3-month LIBOR + 176 bps,
and the Bank has the right to make early redemption, as approved by the BOT. The debentures have loss absorption
features that will come into effect at the point of non-viability, in accordance with BOT guidelines laid down with reference
to Basel lll principles.
On 2 May 2013, the BOT granted approval for the Bank to count Baht 4,973 million received from the issue of the above
subordinated debentures as part of its Tier 2 capital, in accordance with the conditions specified in the BOT’s notifications
regarding the Basel III framework.
Senior debentures
On 22 May 2014, the Bank issued the senior debenture, unsecured and unsubordinated debentures, without Bond representative
amounting to Baht 6,000 million, to Private Placement for Institutional Investors. The debentures have a tenor of 2-3 years,
interest is payable semi-annually. Of these, Baht 3,500 million bear interest at fixed rate of 2.92% per annum and mature in
2016, and another Baht 2,500 million bear interest at fixed rate of 3.24% per annum and mature in 2017.
25.
Provisions for long-term employee benefits
Changes in provisions for long-term employee benefits under retirement plans as at 31 December 2014 and 2013 can be
summarised as follows:
(Unit: Million Baht)
For the year ended 31 December 2014
Consolidated
financial statement
Separate
financial statement
Defined benefit obligation at beginning of year
Current service cost
Interest cost
Actuarial losses on defined benefit plans for the year
Employee benefits paid during the year
1,493
101
56
145
(160)
1,485
99
56
144
(160)
Provision for long-term employee benefits at end of year
1,635
1,624
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014 |
69
Notes to Consolidated Financial Statements
(continued)
(Unit: Million Baht)
For the year ended 31 December 2013
Consolidated
financial statement
Separate
financial statement
Defined benefit obligation at beginning of year
Current service cost
Interest cost
Actuarial losses on defined benefit plans for the year
Employee benefits paid during the year
Decrease from transfer of subsidiary company
1,372
85
48
132
(129)
(15)
1,349
84
48
133
(129)
-
Provision for long-term employee benefits at end of year
1,493
1,485
Long-term employee benefits expense included in profit or loss from operation for the years ended 31 December 2014 and
2013 can be summarised as follows:
(Unit: Million Baht)
Current service cost
Consolidated financial statements
Separate financial statements
For the years ended 31 December
For the years ended 31 December
2014
2013
2014
2013
101
85
99
84
56
48
56
48
157
133
155
132
Interest cost
Total employee benefits expense included in profit
or loss from operation
Long-term employee benefits expense is recognised as an expense in profit or loss from operation.
Total actuarial losses on defined benefit plans recognised in the other comprehensive income (loss) of the Bank and its
subsidiaries as at 31 December 2014 by losses Baht 145 million (2013: losses Baht 132 million). The Bank only: by losses
Baht 144 million (2013: losses Baht 133 million).
The principal assumptions used in determining employee benefits under retirement plans can be summarised as follows:
Consolidated and separate financial statements
As at 31 December
Future salary increases rate (depending on age)
Turnover rate (depending on age)
Discount rate
70 | UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
2014
2013
5% - 7.5%
1% - 25%
3.3%
5% - 7.5%
1% - 25%
4.2%
Notes to Consolidated Financial Statements
(continued)
Amounts of defined benefit obligation for the current and previous years are as follows:
(Unit: Million Baht)
Experience adjustments arising
on the plan liabilities
Defined benefit obligation
Consolidated
financial statements
Separate
financial statements
Consolidated
financial statements
Separate
financial statements
1,635
1,493
1,372
1,372
1,232
1,624
1,485
1,349
1,352
1,219
36
69
2
66
-
36
70
2
65
-
Year 2014
Year 2013
Year 2012
Year 2011
Year 2010
26.
Provisions - other liabilities
Outstanding balance comprise the following:
(Unit: Million Baht)
Consolidated and separate financial statement
For the year ended 31 December 2014
Contingencies
Obligation for
litigation cases
Other
Total
Beginning balance
Increase (decrease) during the year
Utilised
186
(26)
-
80
60
(24)
-
266
34
(24)
Ending balance
160
116
-
276
(Unit: Million Baht)
Consolidated and separate financial statement
For the year ended 31 December 2013
Contingencies
Obligation for
litigation cases
Other
Total
Beginning balance
Decrease during the year
Utilised
Transfer to allowance for impairment of other assets
212
(26)
-
90
(10)
-
11
(11)
313
(26)
(10)
(11)
Ending balance
186
80
-
266
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014 |
71
Notes to Consolidated Financial Statements
(continued)
27.
Other liabilities
(Unit: Million Baht)
Separate financial statements
As at 31 December
As at31 December
2014
2013
2014
2013
Suspense creditors and Accounts payable - others
586
728
601
742
Deposits
778
1,131
779
1,133
Deferred income
987
1,086
987
1,085
Interest payable
465
804
466
806
Others
194
106
204
117
3,010
3,855
3,037
3,883
Total
28.
Consolidated financial statements
Other components of equity
(Unit: Million Baht)
Consolidated and separate financial statements
As at 31 December
2014
2013
1,964
2,024
Revaluation surplus on investments
Revaluation surplus on investments
Available-for-sale investments
Debt instruments
Equity instruments
113
469
92
365
Total
582
457
Revaluation deficit on investments
Available-for-sale investments
Equity instruments
(1)
(2)
Total
(1)
(2)
Total revaluation surplus on investments
581
455
Deferred tax relating to components of other
comprehensive income (loss)
(509)
(496)
2,036
1,983
Revaluation surplus on assets
Total
72 | UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Notes to Consolidated Financial Statements
(continued)
29.
Statutory reserve
Pursuant to Section 116 of the Public Company Limited Act B.E. 2535, the Bank is required to set aside to a statutory reserve
at least 5% of its net profits, after deducting any balance of deficit brought forward (if any), until such reserve reaches 10%
of the Bank’s registered share capital. The statutory reserve is not available for dividend distribution.
In addition, under the Civil and Commercial Code, the Bank’s subsidiaries are required to set aside a statutory reserve at
least 5% of their net profits each time dividend is declared until the reserve reaches 10% of registered share capital.
The statutory reserve cannot be used for dividend payment.
30.
Capital funds
The primary objective of the Bank’s capital management is to maintain an optimal level of capital. Policies are set to ensure
that the capital maintained is adequate to support the business growth, taking into consideration regulatory requirements,
the underlying risks of the Bank’s business and the maintenance of a good credit rating. The policies approved by the Board
of Directors are overseen by senior management.
The Bank adopted the Foundation Internal Ratings-Based Approach (FIRB) in accordance with the Bank of Thailand – Basel
III guideline for computation the capital adequacy ratios. Capital Funds and Capital Adequacy Ratio of the Bank as at
31 December 2014 and 2013 consists of the following:
(Unit: Million Baht)
Separate financial statements
As at 31 December
2014
2013
Tier 1 Capital
Common Equity Tier 1 (CET1)
Paid-up share capital
Statutory reserves
Retained earnings after appropriation
Unrealised revaluation surplus on land and building appraisal
Gain on revaluation of AFS equity and debt securities
Deduct: Deductions items from Common Equity Tier 1
- Intangible assets and deferred tax assets
24,856
595
10,924
1,545
393
24,856
469
7,006
1,587
291
(1,367)
(1,941)
Total Tier 1 Capital
36,946
32,268
Tier 2 Capital
Subordinated debentures
Provisions
4,973
1,788
4,973
1,770
Total Tier 2 Capital
6,761
6,743
Total Capital Funds
43,707
39,011
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014 |
73
Notes to Consolidated Financial Statements
(continued)
(Unit: Percentage)
Separate financial statements
As at 31 December
Capital Adequacy Ratio
The BOT’s Minimum
Requirement
2014
2013
4.50
6.00
8.50
15.25
15.25
18.04
13.17
13.17
15.92
Common Equity Tier 1 to risk-weighted assets
Tier 1 Capital Funds to risk-weighted assets
Total Capital Funds to risk-weighted assets
31.
Share-based compensation plans
The Bank’s Board of Directors Meeting No. 573 approved a resolution to join the share-based payment plan (“the Plan”)
under Long Term Incentives Plan (LTI) which compensation in the form of restricted shares (RS) and share appreciation
rights (SAR) of United Overseas Bank Limited (“major shareholder”) is awarded to selected senior managements. The selection
criteria indicated by the Nomination and Compensation Committee (NCC) of the Bank, considering from several factors such
as individual performance, potential, leadership skills, job level and market competitive.
Details of the plan are below:
(a) Restricted Shares (RS), represent ordinary shares of United Overseas Bank Limited that participants will be entitled
to receive upon fulfillment of certain time and performance conditions. Upon vesting, participants will receive United
Overseas Bank Limited’s shares represented by the restricted shares as per the plan’s rules.
(b) Share Appreciation Rights (SAR) are the rights to receive a number of United Overseas Bank’s Limited shares equivalent
in value to the difference between the prevailing market value and the grant value of the shares of the major shareholder
multiplied by number of SAR as per the Plan’s rules and divided by the prevailing market value of the shares of the major
shareholder. Upon vesting of the SAR, participants have up to six years from the date of grant to exercise their rights.
Long Term Incentives Plan has been replaced by Executive Equity Plan (EEP) and SAR will be ceased from 2014 onwards.
Any SAR previously granted under Long Term Incentives Plan (LTI) will remain enforced until SAR expires/lapses.
For the year ended 31 December 2014 the Bank recorded expenses of Baht 54 million (2013: Baht 45 million) for the above
plan and expenses that will be reimbursed from the major shareholder as other liabilities, as disclosed in Note 27 to the
financial statements.
74 | UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Notes to Consolidated Financial Statements
(continued)
32.
Commitments and contingencies liabilities
32.1 Commitments
(Unit: Million Baht)
Consolidated and separate financial statements
As at 31 December
2014
2013
Aval to bills
Guarantees of loans
Liabilities under unmatured import bills
Letters of credit
Other commitments
- Undrawn overdraft amount
- Spot foreign exchange contracts
- Other guarantees
2,571
3,439
879
4,648
1,293
3,407
824
3,724
23,225
1,225
20,193
22,683
6,286
21,437
Total
56,180
59,654
32.2 Operating lease commitments
As at 31 December 2014 and 2013, the Bank and its subsidiaries had land/building lease agreements for branch offices and
vehicles lease agreements, for which the lease terms range from 3 - 30 years and are renewable. The Bank and its subsidiaries
also have committed to pay future rental payments which can be summarised as follows:
(Unit: Million Baht)
Consolidated and separate financial statements
As at 31 December
2014
2013
Land and building rental commitments
Car rental commitments
492
118
414
110
Total
610
524
32.3 Commitments under Bancassurance Agreement
On 31 January 2010, the UOB Group and the Bank signed a business partner agreement (Bancassurance Agreement) with
an Insurance Group. Under the agreement the Bank received a sum of the fees in advance. With the commitment to the
agreement for 12 years from the date of the agreement. The Bank amortises such fees income over the term of the agreement
and presents the fees received in advance under other liabilities - deferred income, as disclosed in Note 27 to the financial
statements.
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014 |
75
Notes to Consolidated Financial Statements
(continued)
32.4 Other commitments
The Bank has contractual commitments in respect of the purchase and servicing of information technology systems as well
as other services. The outstanding balances of these major contractual commitments as at 31 December 2014, were
approximately Baht 427 million (2013: Baht 314 million).
As at 31 December 2014, the Bank also has commitments in relation to various “to-sell and to-purchase” agreements for
its foreclosed properties, the net book value of which was Baht 32 million (2013: Baht 104 million). The estimated gains
under those agreements is Baht 16 million (2013: gains Baht 9 million). The Bank has commitments to purchase the properties
foreclosed of Baht 99 million (2013: Baht 74 million).
In addition, the Bank has commitments in respect of the loss sharing under the Non-performing Loan Transfer Agreement
made with TAMC under dispution, as per details discussed in Note 14.8 to the financial statements.
33.
Assets pledged as collateral
(Unit: Million Baht)
Consolidated and separate financial statements
Net book value
As at 31 December
Government bonds
Pledged as collateral for Intraday Liquidity Facilities to the BOT
Pledged as collateral for against borrowing to the BOT
Pledged as collateral for Private Repurchase Agreements (Private Repo)
34.
2014
2013
8,848
2,827
3,014
7,235
5,983
Litigation
In the course of operating its banking business, the Bank has various labor suits and civil suits brought against it, including
cases of tort. Under these lawsuits, claims against the Bank as at 31 December 2014 totaled Baht 1,750 million (2013:
Baht 1,241 million). The Bank’s management believes that the contingent liability (if any) resulting from the lawsuits will not have
a material impact to the Bank’s financial position or results of operations.
35.
Related party transactions
During the year, the Bank had significant business transactions with its subsidiaries, associated, related companies (related
by ways of shareholding and/or common shareholders and/or common directors) and related persons (Directors and Senior
Management who are the level of Executive Director upwards, and their close family members). These transactions have
been concluded on commercial terms and based agreed upon in the ordinary course of business between the Bank,
companies and those parties. Interest rates on loans to employees are calculated based on the Bank’s employee welfare
rule.
As at 31 December 2014, the Bank also has staff welfare loans to executives from level of Executive Director upwards of
Baht 33 million (2013: Baht 28 million) and also has normal loans to Senior Management and their close family members
with the outstanding balance of Baht 33 million (2013: Baht 24 million) and the average balance for the year ended of Baht
23 million (2013: Baht 27 million).
In addition, as at 31 December 2014, the Bank also has deposits of those staff and their close family members of
Baht 91 million (2013: Baht 86 million).
76 | UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Notes to Consolidated Financial Statements
(continued)
Significant transactions, outstanding balances, income and expenses incurred with related parties, apart from those disclosed
in the other notes, are summarised below.
(Unit: Million Baht)
Consolidated financial statements
For the years ended 31 December
2014
2013
Related
companies
Group of major
shareholder
(UOB)
29
-
Interest income
Interest expenses
Fees and service income
Net gain (loss) on foreign currency trading
and exchange transaction
Other operating income
Data processing charges
Other expenses
Total
Related
companies
Group of major
shareholder
(UOB)
Total
7
302
306
7
331
306
53
-
2
305
95
2
358
95
863
526
31
863
526
31
-
(747)
1
546
20
(747)
1
546
20
(Unit: Million Baht)
Separate financial statements
For the years ended 31 December
2014
Related
Subsidiaries companies
Interest income
Interest expenses
Fees and service income
Fees and service expenses
Net gain (loss) on foreign currency
trading and exchange transaction
Other operating income
Premises and equipment expenses
Data processing charges
Other expenses
2013
Group of
major
shareholder
(UOB)
Related
Total Subsidiaries companies
Group of
major
shareholder
(UOB)
Total
4
25
174
28
-
7
302
294
-
7
334
319
174
7
162
175
53
-
2
304
82
-
2
364
244
175
9
(2)
-
-
863
526
31
863
9
(2)
526
31
7
(3)
-
-
(747)
1
546
20
(747)
8
(3)
546
20
In addition, for the year ended 31 December 2014, the Bank also has paid Baht 65 million (2013: Baht 96 million) on software
development to United Overseas Bank Limited, major shareholder.
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014 |
77
Notes to Consolidated Financial Statements
(continued)
Director and senior management personnel compensation
For the years ended 31 December 2014 and 2013, the remuneration that the Bank and its subsidiaries paid to their directors
and senior management, who are key management personnel with authority and responsibility, whether direct or indirect,
for planning, direction and controlling the operations of the Bank and its subsidiaries, consisted of monthly remuneration,
salaries, provident fund contributions and long-term benefits. This was as follows:
(Unit: Million Baht)
Consolidated financial statements
Separate financial statements
For the years ended
31 December
For the years ended
31 December
2014
2013
2014
2013
357
333
348
323
Post-employment benefits
22
17
22
17
Share-based payment
54
43
54
43
433
393
424
383
Short-term employee benefits
Total
78 | UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Major shareholders
United Overseas Bank
Limited
United Overseas Bank
Group of Companies
Related companies
Loxley Pcl.
The Muangthai Life
Assurance Pcl.
Underwaterworld Pattaya
Co., Ltd.
Haw Par Tiger Balm
(Thailand) Limited
Loxley Wireless Co., Ltd.
Loxbit Pcl.
TRC Construction Pcl.
TISCO Asset
Management Co., Ltd.
AXA Insurance Pcl.
Non-consolidated
subsidiary company
UOB Leasing (Thai)
Co., Ltd.
Interbank
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
49
150
-
-
-
-
-
-
-
503
-
-
-
-
-
-
Average
and money
outstanding Outstanding
market
loans to
loans to
items Derivatives
customers customers
(assets)
assets
Interbank
As at 31 December
Interbank
58
1
-
-
-
-
-
-
-
87,735
-
1
89
-
-
-
-
18
-
-
3
-
-
-
2,242
- 41,425
-
124
4
1
142
-
1
8
-
307
-
-
-
-
-
-
-
5,604
-
-
-
-
-
-
29
153
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
51
1,191
-
-
-
-
-
-
-
64
-
-
-
-
-
-
and money
Average
and money
market
Debt issued
outstanding Outstanding
market
Other
items Derivatives
and
Other
loans to
loans to
items Derivatives
assets Commitments Deposits (liabilities) liabilities borrowings liabilities customers customers
(assets)
assets
2014
48
1
-
-
-
-
-
-
Other
assets
-
50,355
-
1
-
-
-
18
-
Commitments
Interbank
33
30
-
-
1,003
-
-
-
2,825
- 73,018
-
70
3
1
12
113
-
-
8
and money
market
items
Deposits (liabilities)
2013
-
648
-
-
-
-
-
-
Derivatives
liabilities
-
5,578
-
-
-
-
-
-
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
2014 Pricing
policy of loans
149 Money market
reference rate
Money market
74 reference rate
-
-
-
3
-
-
Debt issued
and
Other
borrowings liabilities
(Unit: Million Baht)
(continued)
Consolidated financial statements
The outstanding balances of significant related party transactions as at 31 December 2014 and 2013 are as follows:
(Continue)
Notes to Consolidated Financial Statements
Notes to Consolidated Financial Statements
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014 |
79
80 | UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Co., Ltd.
Interbank
49
150
-
503
-
-
58
1
-
-
-
-
87,735
-
-
89
1
-
-
-
-
-
-
-
-
-
18
-
-
-
-
-
-
3
-
-
-
-
-
2,242
- 41,425
-
-
1
-
4
124
142
-
1
-
8
76
130
-
-
307
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5,604
-
-
-
-
-
-
-
-
-
-
-
-
-
5
153
-
-
-
-
-
-
-
-
-
-
-
17
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
51
1,191
-
-
-
-
-
-
-
-
-
-
-
-
-
64
-
-
-
-
-
-
-
-
-
-
-
-
-
48
1
-
-
-
-
-
-
-
-
-
-
-
2
11
-
-
50,355
-
-
-
1
-
-
-
-
18
-
-
-
-
30
33
-
-
-
-
-
1,003
-
5
-
-
-
2,825
- 73,018
-
-
12
1
3
70
113
-
-
-
8
98
124
-
-
648
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5,578
-
-
-
-
-
-
-
-
-
-
-
-
1
3
149
-
-
-
-
-
-
-
3
-
-
-
16
reference rate
Money market
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
2014 Pricing
policy of loans
reference rate
-
-
-
-
-
-
-
-
-
-
-
-
-
4
12
Other
liabilities
Group of Companies
-
-
-
-
-
-
-
-
-
-
-
-
-
Derivatives Other
assets assets Commitments
Interbank
and money
market
Debt issued
items Derivatives
and
Deposits (liabilities)
liabilities borrowings
2013
Money market
-
-
-
-
-
-
-
-
-
-
-
-
-
Interbank
Average
and money
outstanding Outstanding
market
Other
loans to
loans to
items
liabilities customers customers
(assets)
As at 31 December
(Unit: Million Baht)
United Overseas Bank
Limited
United Overseas Bank
Major shareholders
AXA Insurance Pcl.
-
-
-
TISCO Asset Management
TRC Construction Pcl.
-
-
Loxbit Pcl.
-
-
-
-
-
-
-
-
-
(Thailand) Limited
-
-
-
-
Loxley Wireless Co., Ltd.
Haw Par Tiger Balm
Co., Ltd.
Underwaterworld Pattaya
Assurance Pcl.
The Muangthai Life
Loxley Pcl.
Related companies
(Thai) Co., Ltd.)
as UOB Asset Management
Co., Ltd. (formerly known
-
-
UOB Leasing (Thai) Co., Ltd.
Thai Wealth Management
-
-
UOB Services Co., Ltd.
(Thai) Co., Ltd.
Interbank
Average
and money
and money
outstanding Outstanding
market
market
Debt issued
loans to
loans to
items Derivatives Other
items Derivatives
and
customers customers
(assets)
assets assets Commitments Deposits (liabilities)
liabilities borrowings
2014
Separate fi nancial statements
(continued)
Subsidiary companies
UOB Bullion and Futures
(Continue)
Notes to Consolidated Financial Statements
Notes to Consolidated Financial Statements
Notes to Consolidated Financial Statements
(continued)
36.
Other benefits paid to the directors and management
As at 31 December 2014 and 2013, the Bank and its subsidiaries had not paid other benefits to their directors and management
other than those they normally receive. Directors receive monthly directors’ remuneration and management receive salary,
bonus and other benefits, as discussed in Note 31 and Note 35 to the financial statements.
37.
Income tax
Income tax expenses for the years ended 31 December 2014 and 2013 are made up as follows:
(Unit: Million Baht)
Consolidated financial statements
Separate financial statements
For the years ended 31 December
For the years ended 31 December
2014
2013
2014
2013
Current income tax:
Current income tax charge
874
7
872
-
Adjustment
(57)
(36)
(57)
(36)
(209)
880
(210)
882
-
(221)
-
(221)
608
630
605
625
Deferred tax:
Relating to origination and reversal of temporary
differences
Adjustment
Income tax expense reported in the statement of
comprehensive income
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014 |
81
Notes to Consolidated Financial Statements
(continued)
Reconciliation between income tax expenses and the product of accounting profit multiplied by the applicable tax rates for
the years ended 31 December 2014 and 2013 are as follows:
(Unit: Million Baht)
Consolidated financial statements
Separate financial statements
For the years ended 31 December
For the years ended 31 December
2014
2013
2014
2013
Accounting profit before income tax expense
3,094
3,337
3,108
3,790
Accounting profit before income tax expense
from discontinued operations
from continuing operations
-
263
-
-
Accounting profit before income tax expense
3,094
3,600
3,108
3,790
20%
20%
20%
20%
619
720
622
758
(9)
(42)
(9)
(109)
Applicable tax rate
Accounting profit before income tax expense
multiplied by applicable tax rate
Income not subject to tax
9
8
9
8
Adjustment
Expense not deductible for tax
(57)
(36)
(57)
(36)
Other adjustment
36
(3)
30
-
Income tax recognition
10
4
10
4
608
651
605
625
608
630
605
625
-
21
-
-
608
651
605
625
Income tax expense
Income tax expense reported in the statement of
comprehensive income from continuing operations
Income tax expense reported in the statement of
comprehensive income from discontinued operations
82 | UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Notes to Consolidated Financial Statements
(continued)
38.
Earnings per share
Basic earnings per share is calculated by dividing net income for the years attributable to equity holders of the Bank (exclude
other comprehensive income) by the weighted average number of ordinary shares in issue during the years.
Consolidated financial statements
Separate financial statements
For the years ended 31 December
For the years ended 31 December
2014
2013
2014
2013
2,485
2,705
2,503
3,165
1.00
1.09
1.01
1.27
-
242
-
-
-
0.10
-
-
Profit for the year from continuing operations
(Million Baht)
Earning per share from continuing operations
(Baht/share)
Profit for the year from discontinued operations
(Million Baht)
Earning per share from discontinued operations
(Baht/share)
Weighted average number of shares (shares)
39.
2,485,661,305 2,485,661,305 2,485,661,305 2,485,661,305
Segment Information
(a) Operating segments
The following segment information are in accordance with internal management report of the Bank submit to Management
Committee who form as Chief Operating Decision Maker (CODM) to decide resources allocation and evaluate performance
of business segment.
The Bank segregate business unit into 3 segments; Retail, Institutional Financial Services (“IFS”) and other, for driving
business and decision-making which base on key customer segments and product groups which are used in business
decision and internal management reporting as follows:
Retail
The Retail segment covers personal financial services (PFS) and business banking (BB) with products of deposits, credit
and debit cards, insurance, wealth management, investments estate planning, consumer loan, secured and unsecured loan
with focus on mortgages and wide range of products through a variety of distribution channels.
Wholesale Banking (formerly known as Institutional Financial Services (“IFS”))
Wholesale Banking segment covers corporate banking, commercial banking and financial institution group (FIG). The corporate
banking provides integrated banking solution to large corporations. The products and services are sophisticated and
customized to specific customers through a variety of distribution channels. The commercial banking focuses on mediumsized companies with a broad range of products and services that include current accounts, deposits, lending, syndicate
loans, cash management, letter of guarantee, trade finance & cross-border payments, underwriting and corporate advisory
services while financial institution group maintains correspondence with and provide financial services to Bank and non-bank
financial institutions.
Other
Other segment includes Global Markets (GM), risk management, property-related activities and income and expenses not
attributable to other operating segments. The global market provides treasury products and advisory services such as foreign
exchange, derivatives and fixed income instruments.
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014 |
83
Notes to Consolidated Financial Statements
(continued)
(b) The accounting policies for operating segment information were align with policies summarized in significant accounting
policies.
The basis of accounting for any transactions between reportable segments is consistent with that for third party transactions.
Total operating income included of net interest income, net fee and service income and other income. The management
relies on total operating income and use it for performance measure. The total operating expenses included of allocated
expenses in respect of cross-sell activities.
Transfer prices between operating segments are on arm’s length basis in a manner similar to transaction with third parties.
No operating income from transactions with a single external customers amounted to 10% or more of the consolidated
operating income.
Capital expenditure and related depreciation together with tax expense will not be allocated to business segment under
management reporting policy.
In 2013, Thai Wealth Management Co., Ltd., a subsidiary transferred their business as disclosed in Note 13 to the financial statements.
Hence, their results are separately reported in discontinued operation lines.
Financial information of the Bank and its subsidiaries presented by segment is as follow:
(Unit: Million Baht)
Consolidated financial statement
For the year ended 31 December 2014
Total
operating
segment
Retail
Wholesale
Banking
Net interest income
Non interest income
7,289
2,609
2,244
787
1,637
(265)
(88)
11,170
3,043
Operating income
Operating expenses
Bad debt, doubtful accounts and impairment loss
9,898
5,513
1,590
3,031
1,422
1,308
1,372
1,882
(265)
(88)
(331)
-
14,213
8,486
2,633
Profits before income tax expenses
Income tax expenses
2,795
301
(245)
243
3,094
608
Other
Elimination
Profit from continuing operations before
non-controlling interests
Profit from discontinued operations
2,486
-
Net profits before non-controlling interests
2,486
Total operating income included of:
Operating income from third party*
Inter-segment operating income (expenses)
Depreciation
Capital expenditure
9,851
47
* Including income from a major shareholder and United Overseas Bank Group of Companies
84 | UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
2,927
104
1,523
(151)
(88)
-
14,213
337
844
Notes to Consolidated Financial Statements
(continued)
(Unit: Million Baht)
Consolidated financial statement
For the year ended 31 December 2013
Total
operating
segment
Retail
Wholesale
Banking
Other
Net interest income
Non interest income
6,121
2,458
2,300
753
1,910
85
(528)
10,331
2,768
Operating income
Operating expenses
Bad debt, doubtful accounts and impairment loss
8,579
4,994
1,439
3,053
1,309
10
1,995
825
1,213
(528)
(28)
-
13,099
7,100
2,662
Profits before income tax expenses
Income tax expenses
2,146
1,734
(43)
(500)
3,337
630
Elimination
Profit from continuing operations before
non-controlling interests
Profit from discontinued operations
2,707
242
Net profits before non-controlling interests
2,949
Total operating income included of:
Operating income from third party*
Inter-segment operating income (expenses)
Depreciation
Capital expenditure
7,915
664
3,180
(127)
2,532
(537)
(528)
-
13,099
340
345
* Including income from a major shareholder and United Overseas Bank Group of Companies.
(Unit: Million Baht)
Consolidated financial statement
As at 31 December 2014
Total Assets
Total Liabilities
Retail
Wholesale
Banking
Other
164,433
166,697
97,559
116,393
136,227
75,164
Elimination
(537)
(346)
Total
operating
segment
397,682
357,908
(Unit: Million Baht)
Consolidated financial statement
As at 31 December 2013
Total Assets
Total Liabilities
Retail
Wholesale
Banking
Other
144,983
158,044
111,002
108,512
152,330
104,271
Elimination
(452)
(257)
Total
operating
segment
407,863
370,570
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014 |
85
Notes to Consolidated Financial Statements
(continued)
(c) Geographic information
The Bank and subsidiaries are operated business in Thailand only. As a result, all of the revenues and assets as reflected in
these financial statements pertain to the aforementioned geographical reportable.
40.
Distribution of statements of financial position items and results of operations classified by geographic locations
and type of businesses
Key statement of financial position items as at 31 December 2014 and 2013, classified by type of business are as follows:
(Unit: Million Baht)
Consolidated financial statement
As at 31 December 2014
Total assets
Interbank and money market items - net (assets)
Investments - net
Loans to customers and accrued interest
receivables - net
Deposits
Interbank and money market items (liabilities)
Debt issued and borrowings
Commercial
Bank
Others*
Total
Eliminated
transaction**
Consolidated
total
397,843
25,984
88,551
269
207
-
398,112
26,191
88,551
(430)
(207)
(191)
397,682
25,984
88,360
259,002
268,683
61,929
11,604
-
259,002
268,683
61,929
11,604
(206)
-
259,002
268,477
61,929
11,604
* Type of business are derivatives brokerage and debt collection under of subsidiaries operations.
** Eliminated transaction are transactions between the Bank and its subsidiaries and are eliminated upon consolidation in accordance with accounting standards.
(Unit: Million Baht)
Consolidated financial statement
As at 31 December 2013
Total assets
Interbank and money market items - net (assets)
Investments - net
Loans to customers and accrued interest
receivables - net
Deposits
Interbank and money market items (liabilities)
Debt issued and borrowings
Commercial
Bank
Others*
Total
Eliminated
transaction**
Consolidated
total
408,027
60,449
73,318
287
228
-
408,314
60,677
73,318
(451)
(228)
(195)
407,863
60,449
73,123
248,756
234,868
90,031
28,019
-
248,756
234,868
90,031
28,019
(227)
-
248,756
234,641
90,031
28,019
* Type of business are derivatives brokerage and debt collection under of subsidiaries operations.
** Eliminated transaction are transactions between the Bank and its subsidiaries and are eliminated upon consolidation in accordance with accounting standards.
86 | UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Notes to Consolidated Financial Statements
(continued)
Distribution of statements of financial position items by geographic locations of the Bank as at 31 December 2014 and 2013
are as follows:
(Unit: Million Baht)
Separate financial statements
As at 31 December
2014
Total assets
Interbank and money market items net (assets)
Investments - net
Loans to customers and accrued
interest receivables - net
Deposits
Interbank and money market items
(liabilities)
Debt issued and borrowings
2013
Domestic
Overseas
Total
Domestic
Overseas
Total
397,843
-
397,843
408,027
-
408,027
25,984
88,551
-
25,984
88,551
60,449
73,318
-
60,449
73,318
259,002
268,683
-
259,002
268,683
248,756
234,868
-
248,756
234,868
61,929
11,604
-
61,929
11,604
90,031
28,019
-
90,031
28,019
Results of the Bank’s operations for the years ended 31 December 2014 and 2013 classified by type of business are as
follows:
(Unit: Million Baht)
Consolidated financial statement
For the year ended 31 December 2014
Commercial
Bank
Others*
Total
Interest income
Less: Interest expenses
18,532
7,365
4
1
18,536
7,366
(4)
(4)
18,532
7,362
Net interest income
Net fees and service income
Other operating income
Less: Other operating expenses
Less: Bad debt, doubtful accounts and
impairment loss
11,167
2,751
159
8,336
3
194
3
183
11,170
2,945
162
8,519
(5)
(59)
(33)
11,170
2,940
103
8,486
2,633
-
2,633
-
2,633
3,108
17
3,125
(31)
3,094
Profit before income tax expenses
Eliminated
transaction**
Consolidated
total
* Type of business are derivatives brokerage and debt collection under of subsidiaries operations.
** Eliminated transaction are transactions between the Bank and its subsidiaries and are eliminated upon consolidation in accordance with accounting standards.
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014 |
87
Notes to Consolidated Financial Statements
(continued)
(Unit: Million Baht)
Consolidated financial statement
For the year ended 31 December 2013
Commercial
Bank
Others*
Total
Interest income
Less: Interest expenses
17,578
7,250
5
2
17,583
7,252
(5)
(5)
17,578
7,247
Net interest income
Net fees and service income
Other operating income
Less: Other operating expenses
Less: Bad debt, doubtful accounts and
impairment loss
10,328
2,546
550
6,972
3
196
4
157
10,331
2,742
554
7,129
(23)
(505)
(29)
10,331
2,719
49
7,100
2,662
-
2,662
-
2,662
3,790
46
3,836
(499)
3,337
Profit before income tax expenses
Eliminated
transaction**
Consolidated
total
* Type of business are derivatives brokerage and debt collection under of subsidiaries operations.
** Eliminated transaction are transactions between the Bank and its subsidiaries and are eliminated upon consolidation in accordance with accounting standards.
Results of the Bank’s operations for the years ended 31 December 2014 and 2013 distributed by geographic locations are
as follows:
(Unit: Million Baht)
Separate financial statements
For the years ended 31 December
2014
2013
Domestic
Overseas
Total
Domestic
Overseas
Total
Interest income
Less: Interest expenses
18,532
7,365
-
18,532
7,365
17,578
7,250
-
17,578
7,250
Net interest income
Net fees and service income
Other operating income
Less: Other operating expenses
Less: Bad debt, doubtful accounts
and impairment loss
11,167
2,751
159
8,336
-
11,167
2,751
159
8,336
10,328
2,546
550
6,972
-
10,328
2,546
550
6,972
2,633
-
2,633
2,662
-
2,662
Profit before income tax expenses
3,108
-
3,108
3,790
-
3,790
88 | UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Notes to Consolidated Financial Statements
(continued)
41.
Interest income
(Unit: Million Baht)
Interbank and money market items
Investments and trading transactions
Investments in debt securities
Loans
Hire purchase and financial lease income
Others
Total interest income
42.
Consolidated financial statements
Separate financial statements
For the years ended 31 December
For the years ended 31 December
2014
2013
2014
2013
882
1,179
882
1,179
549
682
549
682
1,068
1,104
1,068
1,104
15,745
14,303
15,745
14,303
287
308
287
308
1
2
1
2
18,532
17,578
18,532
17,578
Interest expenses
(Unit: Million Baht)
Consolidated financial statements
Separate financial statements
For the years ended 31 December
For the years ended 31 December
2014
2013
2014
2013
5,005
4,654
5,009
4,658
323
381
323
381
1,177
980
1,177
980
- Bills of exchange
605
1,123
605
1,123
- Subordinated debentures
124
94
124
94
- Senior debentures
111
-
111
-
17
15
16
14
7,362
7,247
7,365
7,250
Deposits
Interbank and money market items
Payments to the Deposit Protection Agency
and Financial Institutions Development Fund
Debt issued
Others
Total interest expenses
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014 |
89
Notes to Consolidated Financial Statements
(continued)
43.
Net fees and service income
(Unit: Million Baht)
Consolidated financial statements
Separate financial statements
For the years ended 31 December
For the years ended 31 December
2014
2013
2014
2013
- Acceptances, aval and guarantees
330
311
330
311
- Credit cards
799
719
799
719
Fees and service income
1,019
881
1,019
881
- Mutual Fund management and underwriting fees
- Insurance fees
289
215
289
215
- Others
899
953
882
953
3,336
3,079
3,319
3,079
104
94
106
96
2
2
176
177
290
264
286
260
Total fees and service income
Fees and service expenses
- Agency referral fees
- Service expenses
- Others
Total fees and service expenses
Net fees and service income
44.
396
360
568
533
2,940
2,719
2,751
2,546
Net losses on trading and foreign exchange transactions
(Unit: Million Baht)
Consolidated and separate financial statements
For the years ended 31 December
2014
2013
Gains (losses) on foreign currency trading and exchange transactions
- Foreign currencies and derivatives on foreign exchange
- Foreign currencies - Swap Cost
- Derivatives on interest rates
- Debt securities
- Others
406
(712)
17
96
7
555
(1,023)
11
2
-
Net losses on trading and foreign exchange transactions
(186)
(455)
90 | UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Notes to Consolidated Financial Statements
(continued)
45.
Net gains on investments
(Unit: Million Baht)
Consolidated financial statements
Separate financial statements
For the years ended 31 December
For the years ended 31 December
2014
2013
2014
2013
63
154
63
154
-
12
-
12
63
166
63
166
(2)
(4)
(2)
(4)
-
-
1
(26)
Total
(2)
(4)
(1)
(30)
Net gains on investments
61
162
62
136
Gains on disposal of securities
- Available-for-sale securities
- General investments
Total
Reversal (losses) on impairment of investments
- General investments
- Investments in subsidiary
46.
Employee’s expenses
(Unit: Million Baht)
Consolidated financial statements
For the years ended 31 December
2014
2013
Salaries and bonuses
Post-employment benefit costs
- Defined contribution plans
- Defined benefit plans
Share-based compensation plan (Note 31)
Others
3,171
2,967
122
168
54
827
111
135
45
707
Total employee’s expenses
4,342
3,965
(Unit: Million Baht)
Separate financial statements
For the years ended 31 December
2014
2013
Salaries and bonuses
Post-employment benefit costs
- Defined contribution plans
- Defined benefit plans
Share-based compensation plan (Note 31)
Others
3,083
2,885
119
166
54
803
108
133
45
686
Total employee’s expenses
4,225
3,857
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014 |
91
Notes to Consolidated Financial Statements
(continued)
47.
Bad debt, doubtful accounts and impairment loss
(Unit: Million Baht)
Consolidated and separate financial statements
For the years ended 31 December
2014
48.
2013
Bad debt and doubtful accounts of interbank and money market items
Bad debt and doubtful accounts of loans to customers
(4)
2,637
36
2,626
Total bad debt, doubtful accounts and impairment loss
2,633
2,662
Components of other comprehensive losses
(Unit: Million Baht)
Consolidated financial statements
Separate financial statements
For the years ended 31 December
For the years ended 31 December
2014
2013
2014
2013
150
(114)
150
(114)
(23)
117
(23)
117
Other comprehensive income (losses) Continuing Operations
Gains (losses) on revaluation of available-for-sale
investments
Unrealised gains (losses) during the year
Less: Reclassification of adjustment for the realised
gains (losses) that included in profit or loss
Total
127
3
127
3
Actuarial loss on defined benefit plans
(145)
(132)
(144)
(133)
Income tax relating to components of other
comprehensive loss
Other comprehensive losses - net
49.
3
26
3
26
(15)
(103)
(14)
(104)
Disclosure of financial instruments
The Bank enters into financial instruments which are considered to be commitments arising in the normal course of business,
in order to meet the financing needs of its customers and to reduce its own exposure to fluctuations in foreign exchange
rates and interest rates. These commitments include commitments to extend credit, standby letters of credit, financial
guarantees and forward foreign exchange contracts. Such instruments involve, to varying degrees, elements of credit risk,
interest rate risk and foreign exchange risk in excess of the amount already recognised in the financial statements. The
contracts or notional amounts of those instruments reflect the extent of the commitments that the Bank involved in particular
classes of financial instruments.
The Bank enters into derivative contracts as part of its risk management strategy primarily to manage market risks arising
from the Bank’s underlying assets and liabilities and to reduce customer risks. In entering into financial instruments which
are considered to be commitments, the Bank is governed by policies and parameters proposed by the Assets and Liabilities
Committee and endorsed by the Corporate Risk Management Committee and Board of Directors.
92 | UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Notes to Consolidated Financial Statements
(continued)
49.1 Accounting policies
Details of significant accounting policies and methods adopted, including criteria for recognition, the basis of measurement
and the basis on which revenues and expenses are recognised in respect of each class of financial assets and financial
liabilities, are disclosed in Note 5 to the financial statements.
49.2 Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the
Bank and its subsidiaries. The Bank and its subsidiaries have adopted the policy of only dealing with creditworthy
counterparties and obtaining sufficient collateral or other securities, where appropriate, as a means of mitigating the risk of
financial losses as a result of defaults.
In the case of recognised financial assets, the carrying amount of the assets recorded in the statements of financial position,
net of allowance for doubtful accounts, represents the Bank’s and its subsidiaries’ maximum exposure to credit risk.
Furthermore, the Bank’s exposure to credit risk in the event of non-performance by the counterparties to commitments to
extend credit, standby letters of credit, and financial guarantees is represented by the contractual notional amount of those
instruments. The Bank uses the same credit policies in making commitments and accepting conditional obligations as it
does for on-statements of financial position instruments. For derivatives, the contract or notional amounts do not represent
the real exposure to credit loss. The Bank controls the credit risk of its derivatives through the credit approval process, credit
limits, and monitoring procedures set by its Executive Committee. Credit risks also arise from the possibility that the
counterparty to the commitments will not adhere to the terms of the contract with the Bank when settlement becomes due.
The following table shows the credit equivalent of unmatured commitments in accordance with the BOT’s ruling.
(Unit: Million Baht)
Consolidated and separate financial statements
As at 31 December
Foreign exchange contracts
Interest rate swap contracts
Cross currency interest rate swap contracts
Options
Commodity derivatives contracts
Avals to bills
Guarantees of loans
Performance guarantees
Bid guarantees
Liability under unmatured import bills
Import letters of credit
Others
Total
2014
2013
4,438
1,285
897
119
769
2,957
3,347
7,204
346
216
973
18
6,150
1,127
718
130
304
1,336
3,182
7,682
181
205
844
52
22,569
21,911
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014 |
93
Notes to Consolidated Financial Statements
(continued)
49.3 Commodity Price Risk
Commodity price risk is the risk arising from the price change of commodities, which may affect the value of the Bank’s
financial instruments or may cause volatility in the Bank’s earnings and cost of funds.
All commodity derivatives is being managed on back-to-back basis. The risk is independently monitored by Market Risk
Management and Market Risk Control.
49.4 Interest rate risk
Interest rate risk arises when there is the potential for a change in interest rates to have an adverse effect on the net interest
income of the Bank and its subsidiaries in the current reporting period, and in the future. Interest rate risk arises from the
structure and characteristics of the Bank and its subsidiaries’ assets, liabilities, shareholders’ equity and interest rate linked
derivative contracts, and from maturity mismatch in the repricing dates of their assets and liabilities.
The table below shows the Bank and its subsidiaries’ exposure to interest rate risk, the remaining period to the earlier of
contractual repricing dates or maturity dates, and the average contractual interest rate, where applicable, for classes of
financial assets and financial liabilities subject to interest rate risk.
In the below table, financial assets and liabilities represent outstanding balance in statement of financial position and
derivatives represent notional amount.
94 | UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Notes to Consolidated Financial Statements
(continued)
(Unit: Million Baht)
Consolidated financial statement
As at 31 December 2014
Financial assets
Cash
Interbank and money market
items - net
Derivatives assets
Investments - net
Loans to customers*
Other receivable - TAMC - net
Financial liabilities
Deposits
Interbank and money market
items
Liabilities payable on demand
Derivatives liabilities
Debt issued and borrowings
Derivatives
Derivatives on foreign exchange
and interest rates
- floating rate payer
- fixed rate payer
- floating rate payee
- fixed rate payee
Derivatives on interest rates
- floating rate payer
- fixed rate payer
- floating rate payee
- fixed rate payee
More than
5 years
Noninterest
bearing
Total
Average
rate of
return per
annum (%)
-
-
6,178
6,178
-
944
40,173
18,962
-
24,439
18,825
-
16
-
4,111
6,221
745
7,003
1,210
25,984
6,221
88,360
266,574
1,210
1.77
2.05
6.99
-
198,384
58,168
6,172
-
5,753
268,477
1.92
51,271
5,604
7,930
-
1,142
6,000
-
1,586
2,615
6,245
-
61,929
2,615
6,245
11,604
0.64
2.55
6,883
7,710
-
5,469
8,447
-
8,841
5,036
-
-
12,352
8,841
16,157
5,036
1.04
2.33
1.26
3.21
105,046
56,480
132,696
21,258
102,311
99,492
115,932
82,852
85,544
7,111
88,459
7,499
8,064
-
207,357
249,015
255,739
200,633
1.77
2.35
1.74
2.42
Floating
rate/ Within
3 months
3 - 12
months
1-5
years
-
-
20,929
23,003
221,768
-
* Under the Bank’s interest rate risk management policy, non-accrual loans and loans to customers are overdue with contract had matured are reported in the
non-interest bearing bucket.
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014 |
95
Notes to Consolidated Financial Statements
(continued)
(Unit: Million Baht)
Consolidated financial statement
As at 31 December 2013
Financial assets
Cash
Interbank and money market
items - net
Derivatives assets
Investments - net
Loans to customers*
Other receivable - TAMC - net
Financial liabilities
Deposits
Interbank and money market
items
Liabilities payable on demand
Derivatives liabilities
Debt issued and borrowings
Derivatives
Derivatives on foreign exchange
and interest rates
- floating rate payer
- fixed rate payer
- floating rate payee
- fixed rate payee
Derivatives on interest rates
- floating rate payer
- fixed rate payer
- floating rate payee
- fixed rate payee
More than
5 years
Noninterest
bearing
Total
Average
rate of
return per
annum (%)
-
-
4,783
4,783
-
2,514
48,697
18,015
-
20,199
25,118
-
444
10
-
3,818
9,610
642
7,414
1,210
60,449
9,610
73,123
255,427
1,210
2.16
2.39
7.00
-
160,783
66,182
2,405
-
5,271
234,641
2.23
87,320
5,579
3
22,233
1,891
207
-
817
2,856
7,782
-
90,031
2,856
7,782
28,019
0.55
4.33
3,337
5,779
-
4,495
354
7,471
-
5,219
155
-
-
7,832
5,573
13,250
155
1.97
1.58
0.71
-
140,954
40,323
134,216
40,226
116,530
113,036
136,742
80,417
105,479
411
124,051
6,953
7,212
-
257,484
265,791
271,369
251,906
2.13
2.76
2.26
2.76
Floating
rate/ Within
3 months
3 - 12
months
1-5
years
-
-
54,117
3,141
204,870
-
* Under the Bank’s interest rate risk management policy, non-accrual loans and loans to customers are overdue with contract had matured are reported in the
non-interest bearing bucket.
96 | UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Notes to Consolidated Financial Statements
(continued)
(Unit: Million Baht)
Separate financial statement
As at 31 December 2014
Financial assets
Cash
Interbank and money market
items - net
Derivatives assets
Investments - net
Loans to customers*
Other receivable - TAMC - net
Financial liabilities
Deposits
Interbank and money market
items
Liabilities payable on demand
Derivatives liabilities
Debt issued and borrowings
Derivatives
Derivatives on foreign exchange
and interest rates
- floating rate payer
- fixed rate payer
- floating rate payee
- fixed rate payee
Derivatives on interest rates
- floating rate payer
- fixed rate payer
- floating rate payee
- fixed rate payee
More than
5 years
Noninterest
bearing
Total
Average
rate of
return per
annum (%)
-
-
6,178
6,178
-
944
40,173
18,962
-
24,439
18,825
-
16
-
4,111
6,221
936
7,003
1,210
25,984
6,221
88,551
266,574
1,210
1.77
2.05
6.99
-
198,440
58,318
6,172
-
5,753
268,683
1.92
51,271
5,604
7,930
-
1,142
6,000
-
1,586
2,615
6,245
-
61,929
2,615
6,245
11,604
0.64
2.55
6,883
7,710
-
5,469
8,447
-
8,841
5,036
-
-
12,352
8,841
16,157
5,036
1.04
2.33
1.26
3.21
105,046
56,480
132,696
21,258
102,311
99,492
115,932
82,852
85,544
7,111
88,459
7,499
8,064
-
207,357
249,015
255,739
200,633
1.77
2.35
1.74
2.42
Floating
rate/ Within
3 months
3 - 12
months
1-5
years
-
-
20,929
23,003
221,768
-
* Under the Bank’s interest rate risk management policy, non-accrual loans and loans to customers are overdue with contract had matured are reported in the
non-interest bearing bucket.
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014 |
97
Notes to Consolidated Financial Statements
(continued)
(Unit: Million Baht)
Separate financial statement
As at 31 December 2013
Financial assets
Cash
Interbank and money market
items - net
Derivatives assets
Investments - net
Loans to customers*
Other receivable - TAMC - net
Financial liabilities
Deposits
Interbank and money market
items
Liabilities payable on demand
Derivatives liabilities
Debt issued and borrowings
Derivatives
Derivatives on foreign exchange
and interest rates
- floating rate payer
- fixed rate payer
- floating rate payee
- fixed rate payee
Derivatives on interest rates
- floating rate payer
- fixed rate payer
- floating rate payee
- fixed rate payee
More than
5 years
Noninterest
bearing
Total
Average
rate of
return per
annum (%)
-
-
4,783
4,783
-
2,514
48,697
18,015
-
20,199
25,118
-
444
10
-
3,818
9,610
837
7,414
1,210
60,449
9,610
73,318
255,427
1,210
2.16
2.39
7.00
-
160,860
66,332
2,405
-
5,271
234,868
2.23
87,320
5,579
3
22,233
1,891
207
-
817
2,856
7,782
-
90,031
2,856
7,782
28,019
0.55
4.33
3,337
5,779
-
4,495
354
7,471
-
5,219
155
-
-
7,832
5,573
13,250
155
1.97
1.58
0.71
-
140,954
40,323
134,216
40,226
116,530
113,036
136,742
80,417
105,479
411
124,051
6,953
7,212
-
257,484
265,791
271,369
251,906
2.13
2.76
2.26
2.76
Floating
rate/ Within
3 months
3 - 12
months
1-5
years
-
-
54,117
3,141
204,870
-
* Under the Bank’s interest rate risk management policy, non-accrual loans and loans to customers are overdue with contract had matured are reported in the
non-interest bearing bucket.
49.5 Exchange rate risk
Foreign exchange risk is the risk to earnings and economic value of foreign currency assets, liabilities, and financial derivatives
caused by fluctuations in foreign exchange rates.
The Bank’s foreign exchange exposures comprise of trading and non-trading. Non-trading foreign exchange exposures are
principally derived from customer businesses. The Bank utilises mainly spot foreign exchange, foreign currency forwards,
and swaps to hedge its foreign exchange exposures.
Foreign exchange risk is managed through policies and risk limits approved by the Executive Committee (EXCO). The limits,
such as exposure by currency are independently monitored by Market Risk Management and Market Risk Control.
98 | UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Notes to Consolidated Financial Statements
(continued)
49.6 Liquidity risk
Liquidity risk is the risk that the Bank and its subsidiaries may not be able to meet their obligations as they fall due as a result
of inability to release their assets or to cover funding requirements at an appropriate price, resulting in losses to the Bank
and its subsidiaries.
The Bank maintains sufficient liquidity to fund its day-to-day operations, meet deposit withdrawals and loan disbursements,
and repay borrowings. Hence, liquidity is managed in a manner to address known as well as unanticipated cash funding
needs.
The Bank manages liquidity at a centralised level. Liquidity risk is managed in accordance with a framework of policies,
controls and limits established by the Bank’s Assets and Liabilities Committee (ALCO). These policies, controls and limits
enable the Bank to monitor and manage liquidity risk to ensure that sufficient sources of funds are available over a range of
market conditions. These include minimising excessive funding concentrations by diversifying the sources and terms of
funding as well as maintaining a portfolio of high quality and marketable debt securities.
The Bank takes a conservative stance in its liquidity management by continuing to gather core deposits, ensuring that liquidity
limits are strictly adhered to and that there are adequate liquid assets to meet cash shortfall.
The distribution of deposits is managed actively to ensure a balance between cost effectiveness, continued accessibility to
funds, and diversification of funding sources. Important factors in ensuring liquidity are competitive pricing, proactive
management of the Bank’s core deposits and the maintenance of customer confidence. Core deposits are generally stable
non-bank deposits, such as current accounts, savings accounts and fixed deposits. The Bank monitors the stability of its
core deposits by analysing their volatility over time.
The Bank uses the funds to lend to customers and invests excess funds in government securities.
The Bank’s liquidity risk management is aligned with the regulatory liquidity risk management framework, and is measured
and managed on a projected cash flow basis. The Bank is monitored under ‘business as usual’, and 3 crisis scenarios which
are ‘bank-specific crisis’, ‘general market crisis’ and ‘combination crisis’.
Liquidity Gap Analysis or Cash Flow Mismatch Analysis under the ‘Business as Usual’ scenario is measured and monitored
against Net Cumulative Outflow (NCO) Limits which are set for overnight, 7 days and 30 days. In the event that a limit is
breached, an investigation will be conducted and the related documents reported to relevant parties, in accordance with
the escalation process.
For stress testing (bank-specific crisis, general market crisis and combined scenarios), additional assumptions are taken
into account such as sudden increase in deposit withdrawals, reduction in loan repayments, potential trading losses, or
liquidation of securities with haircuts. These assumptions are agreed by Business Units and approved by Board of Directors
or delegated committee.
The frequency of liquidity risk assessment is conducted on daily and monthly basis. Liquidity gap or maturity mismatch
analysis report is produced by Balance Sheet Risk Management Unit and monitored by Market Risk Control against approved
Net Cumulative Outflow Limits. Other reports such as early warning indicators as well as sources and utilisation of funds
are produced on a monthly basis.
Behavioural modeling is carried out and reviewed regularly to ensure that the cash flow requirements for the ‘business as
usual’ and crisis scenarios are realistic. Loans and deposits which do not have maturity dates and fixed deposits which are
rolled over frequently, are generally estimated based on their past statistics or trends. Cash flow mismatch limits are
established to limit the Bank’s liquidity exposure. The Bank also employs liquidity early warning indicators and trigger points
to signal possible contingency situations.
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014 |
99
Notes to Consolidated Financial Statements
(continued)
Contingency funding plans are in place to identify liquidity crisis using a series of warning indicators. Crisis escalation
processes and various strategies including funding and communication have been developed to minimise the impact of any
liquidity crunch.
The Bank uses liquidity ratios as early warning indicators such as Loans to Deposits Ratio, Single Depositor Ratio and
Top 20 Depositors Ratio, Undrawn Facilities Ratio, Deposit Withdrawal Ratio and Net Cumulative Outflow.
The maturity analysis of financial assets, financial liabilities represent outstanding balance in statement of financial position
and commitments represent notional amount, which are computed from the remaining maturity to repayment date is as
follows:
(Unit: Million Baht)
Consolidated financial statement
As at 31 December 2014
Financial assets
Cash
Interbank and money market
items - net
Derivatives assets
Investments - net
Loans to customers*
Other receivable - TAMC - net
Financial liabilities
Deposits
Interbank and money market
items
Liabilities payable on demand
Derivatives liabilities
Debt issued and borrowings
Commitments
Avals to bills
Guarantee of loans
Liabilities under unmatured
import bills
Letters of credit
Other commitments
Undrawn overdraft amount
Spot foreign exchange
contracts
Other guarantees
Derivatives
Derivatives on foreign exchange
Derivatives on interest rates
Others derivatives
*
Call
Within
3 months
3 - 12
months
1-5
years
More than
5 years
No specific
maturity
Total
6,178
-
-
-
-
-
6,178
19,000
4,438
-
6,034
18,338
59,657
-
945
40,140
30,985
-
29,137
63,218
1,210
5
108,276
-
6,221
745
-
25,984
6,221
88,360
266,574
1,210
156,562
47,575
58,168
6,172
-
-
268,477
28,936
2,615
-
23,921
-
7,930
-
1,142
11,604
-
6,245
-
61,929
2,615
6,245
11,604
20
97
2,478
272
73
906
293
1,871
-
2,571
3,439
45
92
675
3,357
159
102
1,097
-
-
879
4,648
23,225
-
-
-
-
-
23,225
372
11,426
853
1,974
5,110
1,659
24
-
1,225
20,193
27,214
-
362,158
77,738
1,773
188,710
182,344
1,596
21,816
180,726
-
15,564
-
-
599,898
456,372
3,369
Under the Bank’s liquidity risk management policy, non-accrual loans such as certain restructured loans and NPLs are reported in more than 5 years bucket.
100 | UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Notes to Consolidated Financial Statements
(continued)
(Unit: Million Baht)
Consolidated financial statement
As at 31 December 2013
Call
Within
3 months
3 - 12
months
1-5
years
4,783
-
-
-
50,641
7,190
2,514
-
No
specific
maturity
Total
-
-
4,783
104
-
60,449
More than
5 years
Financial assets
Cash
Interbank and money market
items - net
Derivatives assets
-
-
-
-
-
9,610
9,610
Investments - net
10
1,483
48,707
21,837
444
642
73,123
2,911
66,373
31,524
58,478
96,141
-
255,427
-
-
-
-
1,210
-
1,210
114,644
51,410
66,182
2,405
-
-
234,641
30,517
57,620
3
1,891
-
-
90,031
2,856
-
-
-
-
-
2,856
Loans to customers*
Other receivable - TAMC - net
Financial liabilities
Deposits
Interbank and money market
items
Liabilities payable on demand
Derivatives liabilities
-
-
-
-
-
7,782
7,782
Debt issued and borrowings
-
-
22,233
5,786
-
-
28,019
Avals to bills
24
1,132
137
-
-
-
1,293
Guarantee of loans
19
394
646
658
1,690
-
3,407
Commitments
Liabilities under unmatured
import bills
48
619
157
-
-
-
824
227
3,218
279
-
-
-
3,724
22,683
-
-
-
-
-
22,683
1,808
4,478
-
-
-
-
6,286
11,774
1,604
6,282
1,753
24
-
21,437
21,557
279,309
134,074
12,933
-
-
447,873
Derivatives on interest rates
-
80,549
193,453
235,108
14,165
-
523,275
Others derivatives
-
4,074
-
-
-
-
4,074
Letters of credit
Other commitments
Undrawn overdraft amount
Spot foreign exchange
contracts
Other guarantees
Derivatives
Derivatives on foreign exchange
* Under the Bank’s liquidity risk management policy, non-accrual loans such as certain restructured loans and NPLs are reported more than 5 years bucket.
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014 |
101
Notes to Consolidated Financial Statements
(continued)
(Unit: Million Baht)
Separate financial statement
As at 31 December 2014
Call
Within
3 months
3 - 12
months
1-5
years
More than
5 years
No
specific
maturity
Total
6,178
-
-
-
-
-
6,178
19,000
6,034
945
-
5
-
25,984
Financial assets
Cash
Interbank and money market
items - net
Derivatives assets
-
-
-
-
-
6,221
6,221
Investments - net
-
18,338
40,140
29,137
-
936
88,551
4,438
59,657
30,985
63,218
108,276
-
266,574
-
-
-
1,210
-
-
1,210
156,596
47,597
58,318
6,172
-
-
268,683
28,936
23,921
7,930
1,142
-
-
61,929
2,615
-
-
-
-
-
2,615
Loans to customers*
Other receivable - TAMC - net
Financial liabilities
Deposits
Interbank and money market
items
Liabilities payable on demand
Derivatives liabilities
-
-
-
-
-
6,245
6,245
Debt issued and borrowings
-
-
-
11,604
-
-
11,604
Avals to bills
20
2,478
73
-
-
-
2,571
Guarantee of loans
97
272
906
293
1,871
-
3,439
45
675
159
-
-
-
879
92
3,357
102
1,097
-
-
4,648
23,225
-
-
-
-
-
23,225
372
853
-
-
-
-
1,225
11,426
1,974
5,110
1,659
24
-
20,193
27,214
362,158
188,710
21,816
-
-
599,898
Derivatives on interest rates
-
77,738
182,344
180,726
15,564
-
456,372
Others derivatives
-
1,773
1,596
-
-
-
3,369
Commitments
Liabilities under unmatured
import bills
Letters of credit
Other commitments
Undrawn overdraft amount
Spot foreign exchange
contracts
Other guarantees
Derivatives
Derivatives on foreign exchange
* Under the Bank’s liquidity risk management policy, non-accrual loans such as certain restructured loans and NPLs are reported in more than 5 years bucket.
102 | UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Notes to Consolidated Financial Statements
(continued)
(Unit: Million Baht)
Separate financial statement
As at 31 December 2013
Call
Within
3 months
3 - 12
months
1-5
years
More than
5 years
No
specific
maturity
Total
4,783
-
-
-
-
-
4,783
50,641
7,190
2,514
-
104
-
60,449
Financial assets
Cash
Interbank and money market
items - net
Derivatives assets
-
-
-
-
-
9,610
9,610
Investments - net
10
1,483
48,707
21,837
444
837
73,318
2,911
66,373
31,524
58,478
96,141
-
255,427
-
-
-
-
1,210
-
1,210
114,705
51,426
66,332
2,405
-
-
234,868
30,517
57,620
3
1,891
-
-
90,031
2,856
-
-
-
-
-
2,856
Loans to customers*
Other receivable - TAMC - net
Financial liabilities
Deposits
Interbank and money market
items
Liabilities payable on demand
Derivatives liabilities
-
-
-
-
-
7,782
7,782
Debt issued and borrowings
-
-
22,233
5,786
-
-
28,019
Avals to bills
24
1,132
137
-
-
-
1,293
Guarantee of loans
19
394
646
658
1,690
-
3,407
Commitments
Liabilities under unmatured
import bills
48
619
157
-
-
-
824
227
3,218
279
-
-
-
3,724
22,683
-
-
-
-
-
22,683
1,808
4,478
-
-
-
-
6,286
11,774
1,604
6,282
1,753
24
-
21,437
21,557
279,309
134,074
12,933
-
-
447,873
Derivatives on interest rates
-
80,549
193,453
235,108
14,165
-
523,275
Others derivatives
-
4,074
-
-
-
-
4,074
Letters of credit
Other commitments
Undrawn overdraft amount
Spot foreign exchange
contracts
Other guarantees
Derivatives
Derivatives on foreign exchange
* Under the Bank’s liquidity risk management policy, non-accrual loans such as certain restructured loans and NPLs are reported more than 5 years bucket.
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014 |
103
Notes to Consolidated Financial Statements
(continued)
49.7 Estimated fair value of financial instruments
The fair values of financial instruments have been estimated by the Bank and its subsidiaries using available market information
and appropriate valuation methodologies.
49.8 Fair value of financial instruments
As at 31 December 2014 and 2013, the fair values of financial instruments included in the statements of financial position
of the Bank and its subsidiaries are as follows:
(Unit: Million Baht)
Consolidated financial statements
As at 31 December
2014
Type of financial instruments
2013
Book Value
Fair Value
Book Value
Fair Value
Financial assets
Cash
Interbank and money market items - net
Derivatives assets
Investments - net
Loans to customers and accrued interest
receivables - net
Other receivable - TAMC - net
6,178
25,984
6,221
88,360
6,178
25,984
6,221
88,449
4,783
60,449
9,610
73,123
4,783
60,449
9,610
73,217
259,002
1,210
259,002
1,210
248,756
1,210
248,756
1,210
Financial liabilities
Deposits
Interbank and money market items
Liabilities payable on demand
Derivatives liabilities
Debt issued and borrowings
268,477
61,929
2,615
6,245
11,604
268,477
61,929
2,615
6,245
11,604
234,641
90,031
2,856
7,782
28,019
234,641
90,031
2,856
7,782
28,019
(Unit: Million Baht)
Separate financial statements
As at 31 December
2014
Type of financial instruments
2013
Book Value
Fair Value
Book Value
Fair Value
Financial assets
Cash
Interbank and money market items - net
Derivatives assets
Investments - net
Loans to customers and accrued interest
receivables - net
Other receivable - TAMC - net
6,178
25,984
6,221
88,551
6,178
25,984
6,221
88,640
4,783
60,449
9,610
73,318
4,783
60,449
9,610
73,412
259,002
1,210
259,002
1,210
248,756
1,210
248,756
1,210
Financial liabilities
Deposits
Interbank and money market items
Liabilities payable on demand
Derivatives liabilities
Debt issued and borrowings
268,683
61,929
2,615
6,245
11,604
268,683
61,929
2,615
6,245
11,604
234,868
90,031
2,856
7,782
28,019
234,868
90,031
2,856
7,782
28,019
104 | UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Notes to Consolidated Financial Statements
(continued)
49.9 Methods and assumptions in estimating fair value of financial instruments
The following methods and assumptions were used by the Bank and its subsidiaries in estimating fair value of financial
instruments as disclosed herein.
(a) Cash and interbank and money market items
The carrying amounts of cash and interbank and money market items which have remaining maturities of less than
1 year or bear floating rates of interest approximate their fair value. Fair value for fixed rate instruments with remaining
maturities greater than 1 year is estimated by using a discounted cash flow calculation applying average interest rates
currently being offered on similar instruments.
(b) Investments
Fair value for securities is based on quoted market prices, where available. If quoted market prices are not available,
fair value is based on quoted market prices of comparable instruments after adjusting for risk involved or the net asset values
of such securities.
(c) Loans to customers
For floating rate loans that reprice frequently and have no significant change in credit risk, fair value is based on carrying
values. The fair value of fixed rate loans that reprice within 1 year from the statements of financial position date is based
on the carrying value at the statements of financial position date. Fair value for other fixed interest rate loans is estimated
by using discounted cash flow analysis and using average interest rates currently being offered for loans with similar
terms to borrowers of similar credit quality except in case of immaterial, carrying value will be used.
Fair value of hire-purchase and financial lease receivables is estimated by using discounted cash flow analysis and using
interest rates currently being offered with average remaining years to maturity.
(d) Accrued interest receivables
Fair value of accrued interest receivable is based on carrying values.
(e) Deposit liabilities
The fair value of deposits which is payable on demand by the depositor, is equal to the carrying value of such deposits.
The fair value of floating rate, certificates of deposit (CDs) and fixed rate deposits repricable within 1 year approximate their
carrying value at the reporting date. Fair value for other fixed rate deposits is estimated using a discounted cash flow
calculation that applies the current average deposit rates of the four major commercial banks to a schedule of aggregate
expected monthly maturities on time deposits except in case of immaterial, carrying value will be used.
(f) Interbank and money market items (liabilities)
The carrying amount of interbank and money market items which have remaining maturities less than 1 year or bear
floating rates of interest approximates their fair value at the reporting date. Fair value for fixed rate instruments with
remaining maturities greater than 1 year is estimated by using a discounted cash flow calculation applying average
interest rates currently being offered on similar instruments.
(g) Debt issued and borrowings
The fair value of borrowings with remaining maturities less than 1 year approximates their carrying value at the reporting
date. Fair value of borrowings with remaining maturities greater than 1 year is estimated using discounted cash flow
analysis based on the average current borrowing rates for similar types of borrowing arrangements.
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014 |
105
Notes to Consolidated Financial Statements
(continued)
(h) Fair value of commitments
Commitments to aval, guarantee and letters of credit
These financial instruments are generally not intended to be sold or traded such that estimated fair values are not readily
ascertainable. Fair value of these items were not calculated for the following reasons:
- minority of the commitments extending beyond 1 year would commit the Bank to a predetermined rate of interest
- the fees attaching to these commitments are the same as those currently charged to similar arrangements
- the quantum of fees collected under these arrangements, upon which fair value would be determined, is not material
Other commitments
The fair values of foreign exchange contracts were obtained from quoted market prices of similar foreign exchange
contracts. For the other derivative contracts, the fair value is estimated using discounted cash flow.
50.
Approval of financial statements
These financial statements were authorised for issue by the Bank’s Board of Directors on 6 March 2015.
106 | UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Other Information
1.
Subsidiaries companies of UOB (Thai)
1. UOB Services Company Limited
Business
: Collection services
Location
: 690, 17th-18th Floor, Sukhumvit Road, Klongton, Klongtoey, Bangkok 10110
Telephone
: 0 2680 5555
Facsimile
: 0 2258 6900
Paid-up capital
: THB 60,000,000 (10,000,000 ordinary shares)
UOB (Thai)’s holding : 99.99%
2. UOB Bullion and Futures (Thai) Company Limited
Business
: Trading in Futures Contracts
Location
: 191, 7th Floor, South Sathon Road, Yannawa, Sathon, Bangkok 10120
Telephone
: 0 2213 2611
Facsimile
: 0 2213 2614
Paid-up capital
: THB 175,000,000 (1,750,000 ordinary shares)
UOB (Thai)’s holding : 75.00%
3. UOB Leasing (Thai) Company Limited
Business
: The Company registered the closure on 15 October, 2010
Location
: 191 South Sathon Road, Yannawa, Sathon, Bangkok 10120
Telephone
: 0 2343 4527
Facsimile
: 0 2285 1633
Paid-up capital
: THB 3,975,396 (32,000,000 ordinary shares)
UOB (Thai)’s holding : 99.99%
2.
Details of directors as at 31 December 2014
Name
Period
Work Experience
1. Wee Cho Yaw
Jul 2004 - Present
• Chairman of the Board of Directors (Authorised Signatory),
UOB (Thai)
• Chairman Emeritus & Adviser, United Overseas Bank Limited,
Singapore
• Chairman, United Overseas Bank Limited, Singapore
• Chairman and CEO, United Overseas Bank Limited, Singapore
May 2013 - Present
May 2007 - Apr 2013
1974 - Apr 2007
2. Wee Ee Cheong
Jul 2004 - Present
May 2007 - Present
2000 - Apr 2007
3. Suebtrakul Soonthornthum
Aug 2012 - Present
Aug 2010 - Aug 2012
Aug 2008 - Aug 2010
Aug 2004 - Present
1992 - Present
• Deputy Chairman of the Board of Directors (Authorised
Signatory), UOB (Thai)
• Deputy Chairman and CEO, United Overseas Bank Limited,
Singapore
• Deputy Chairman and President, United Overseas Bank Limited,
Singapore
• Member of the Nomination and Compensation Committee,
UOB (Thai)
• Chairman of the Nomination and Compensation Committee,
UOB (Thai)
• Chairman of the Audit Committee, UOB (Thai)
• Independent Director and Member of the Audit Committee,
UOB (Thai)
• Senior Executive Vice President, Loxley Public Company Limited
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
|
107
Other Information
Name
Period
Work Experience
4. Arun Chirachavala
Aug 2014 - Dec 2014
Aug 2012 - Aug 2014
• Chairman of the Audit Committee, UOB (Thai)
• Chairman of the Nomination and Compensation Committee,
UOB (Thai)
• Chairman of Corporate Governance Committee,
TRC Construction Pcl.
• Chairman of the Audit Committee, UOB (Thai)
• Chairman, K.W.C. Warehouse Co., Ltd.
• Independent Director, TRC Construction Pcl.
• Independent Director and Member of the Audit Committee,
UOB (Thai)
• Chairman, Krundhep Document Co., Ltd.
• Executive Chairman, Krungdhep Sophon Pcl.
• Director, Krungdhep Sophon Pcl.
• Director, Palang Sophon Limited.
2012 - Present
Aug 2010 - Aug 2012
Apr 2009 - Present
Jun 2009 - Present
Apr 2008 - Dec 2014
Apr 2008 - Aug 2014
Aug 2007 - May 2014
Aug 2007 - Present
Nov 2006 - Present
5. Chinnawat Bulsuk
Aug 2014 - Present
2003 - Present
• Chairman of the Nomination and Compensation Committee,
UOB (Thai)
• Chairman of the Audit Committee, UOB (Thai)
• Chairman of the Nomination and Compensation Committee,
UOB (Thai)
• Chairman of the Audit Committee, UOB (Thai)
• Independent Director and Member of the Audit Committee,
UOB (Thai)
• Director & CEO, Thai Samut Asset Co., Ltd.
6. Lee Chin Yong
Aug 2004 - Present
2003 - Present
• Authorised Signatory Director, UOB (Thai)
• Managing Director, United Overseas Bank Limited, Singapore
7. Cheo Chai Hong
Nov 2009 - Present
July 2005 - Present
• Authorised Signatory Director, UOB (Thai)
• Managing Director, United Overseas Bank Limited, Singapore
8. Peter Foo Moo Tan
Oct 2012 - Present
Jun 2012 – Sep 2012
July 2011 – May 2012
2004 – 2011
•
•
•
•
Authorised Signatory Director and President & CEO, UOB (Thai)
Deputy President and Deputy CEO, UOB (Thai)
Managing Director, United Overseas Bank Limited, Singapore
CEO, Fortis Bank sa/nv, Singapore
9. Sanchai Apisaksirikul
Mar 2012 - Present
2007 - Present
2001 - 2006
2000 - 2001
•
•
•
•
Authorised Signatory Director, UOB (Thai)
Executive Director, UOB (Thai)
Senior Vice President, Bank of Asia Pcl.
Vice President, Bank of Asia Pcl.
Aug 2012 - Aug 2014
Aug 2008 - Aug 2010
Aug 2006 - Aug 2008
Aug 2004 - Present
108
| UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Other Information
3.
Directors’ Remuneration
as of 31 December 2014
Baht
Nomination &
1.
2.
3.
4.
5.
6.
7.
8.
9.
Wee Cho Yaw
Wee Ee Cheong
Chinnawat Bulsuk
Suebtrakul Soonthornthum
Arun Chirachavala
Lee Chin Yong
Cheo Chai Hong
Peter Foo Moo Tan
Sanchai Apisaksirikul
Total
4.
Board of Directors
Audit Committee
Compensation Committee
1,560,000
1,200,000
840,000
840,000
840,000
480,000
480,000
480,000
480,000
570,000
360,000
510,000
-
120,000
200,000
240,000
280,000
120,000
-
7,200,000
1,440,000
960,000
Senior Management’s Remuneration
In 2014, the Bank paid cash remuneration to the Bank’s senior management amounted Baht 437,695,300 (2013 paid
Baht 379,517,100). In addition to cash remuneration, the Bank also paid non-cash remuneration, which included
provident fund contribution, life and medical insurance premiums, and travelling allowance as disclosed in the Notes to
Consolidated Financial Statement no. 35 in this Annual Report.
5.
Directorships of Directors and Senior Management as at year-end 2014
Directors
1. Wee Cho Yaw
Company
Position
UOB Business Group
1. United Overseas Bank Ltd.
2. United Overseas Insurance Ltd.
3. United Overseas Bank (Malaysia) Bhd.
4. UOB Australia Ltd.
5. Far Eastern Bank Ltd.
6. PT Bank UOB Indonesia
7. United Overseas Bank (China) Ltd.
8. Overseas Union Bank Limited (pending dissolution-merged into UOB)
Chairman Emeritus & Adviser
Chairman
Chairman Emeritus & Adviser
Chairman
Chairman Emeritus & Adviser
President Commissioner
Supervisor
Chairman
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
|
109
Other Information
Company
Position
Wee Family Business Group
1. C.Y.Wee & Company Pte. Ltd.
2. Kheng Leong Company (Pte.) Ltd.
3. Wee Investments (Pte.) Ltd.
4. UOL Group Ltd.
5. Pan Pacific Hotels Group Limited
6. Haw Par Corporation Ltd.
7. United Industrial Corporation Ltd.
8. Marina Centre Holdings Pte. Ltd.
9. Aquamarina Hotel Pte. Ltd.
10. Hotel Marina City Pte. Ltd.
11. Marina Bay Hotel Pte. Ltd.
12. Wee Property (UK) Pte. Ltd.
Chairman
Chairman
Chairman
Chairman
Chairman
Chairman
Chairman
Chairman
Chairman
Chairman
Chairman
Chairman
Non-Profit/Community Service Business Group
1. Kim Mui Hoey Kuan
2. Singapore Chinese Chamber of Commerce & Industry
3. Singapore Federation of Chinese Clan Associations
4. Singapore Hokkien Huay Kuan
5. Wee Foundation
Chairman
Honorary President
Honorary President
Honorary President
Chairman
2. Wee Ee Cheong
110
Company
Position
UOB Business Group
1. Chung Khiaw Bank (Malaysia) Bhd.
2. Far Eastern Bank Ltd.
3. Hermes UOB Capital Management Ltd.
4. OUB Centre Ltd.
5. Overseas Union Bank Ltd. (pending dissolution-merged into UOB)
6. PT Bank UOB Indonesia
7. United Overseas Bank Ltd.
8. United Overseas Bank (China) Ltd.
9. United Overseas Bank (Malaysia) Bhd.
10. United Overseas Insurance Ltd.
11. UOBGC General Partners Ltd.
12. UOB Australia Ltd.
13. UOB Global Capital LLC
14. UOB Global Capital Pte. Ltd.
15. UOB Travel Planners Pte. Ltd.
16. Walden AB Ayala Ventures Co Inc.
Director
Director
Director
Chairman
Director
Vice President Commissioner
Director
Chairman
Director
Director
Director
Director
Chairman
Chairman
Director
Director
| UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Other Information
Company
Position
Wee Family Business Group
1. C Y Wee & Co Pte. Ltd.
2. E C Wee Pte. Ltd.
3. Kheng Leong Co (HK) Ltd.
4. Kheng Leong Company (Pte.) Ltd.
5. K.I.P. Industrial Holdings Ltd.
6. KLC Holdings Ltd.
7. KLC Holdings (Hong Kong) Ltd.
8. Phoebus Singapore Holdings Pte. Ltd.
9. Portfolio Nominees Ltd.
10. Richly Joy Holdings Ltd.
11. Wee Investments (Pte.) Ltd.
12. Wee Venture (Overseas) Ltd.
13. Pilkon Development Co., Ltd.
14. Plaza Hotel Co.,Ltd.
15. Wee Property (UK) Pte. Ltd.
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Non-Profit/Community Service/Relationship (Networking ) Business Group
1. ASEAN Finance Corporation Ltd.
2. INSEAD East Asia Council & International Council
3. Singapore-China Foundation
4. Singapore Chinese Chamber of Commerce & Industry
5. The Association of Banks in Singapore
6. The Institute of Banking & Finance
7. Visa APCEMEA Senior Client Council
8. Wee Foundation
Director
Advisory Board Member
Member, Board of Governors
Honorary Council Member
Council Member
Director
Member
Director
3. Chinnawat Bulsuk
Company
Position
Chinnawat Bulsuk's Business Group
1. Thai Samut Asset Co., Ltd.
Director & CEO
Other Business Group
1. Chong Choe Co., Ltd.
Director
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
|
111
Other Information
4. Suebtrakul Soonthornthum
Company
Position
Loxley Business Group
1. Loxley Public Co., Ltd.
2. Loxley Global Co., Ltd.
3. Loxley GTECH Technology Co., Ltd.
4. Loxley Trading Co., Ltd.
5. Loxley Property Development Co., Ltd.
6. Foseco (Thailand) Co., Ltd.
7. NS BlueScope (Thailand) Co., Ltd.
8. NS BlueScope Services (Thailand) Co., Ltd.
9. NS BlueScope Lysaght (Thailand) Co., Ltd.
10. BP - Castrol (Thailand) Co., Ltd.
11. Ekpavee Co., Ltd.
12. Data Mining Co., Ltd.
13. Asia Securities Management Co., Ltd.
14. Zin Suapah Co., Ltd.
15. Loxley Joint and Hold Co.,Ltd.
16. Oriental Post Co., Ltd.
17. Postique Co., Ltd.
18. BlueScope Building (Thailand) Co.,Ltd.
Director & SEVP
Director
Director
Director
Director
Chairman
Director
Director
Director
Director
Director
Director
Director
Director
Director
Independent Director
Independent Director
Director
Muang Thai Life Assurance Public Co., Ltd. Group
1. Muang Thai Life Assurance Public Co., Ltd.
2. Muang Thai Real Estate Public Co., Ltd.
Independent Director
Chairman
Other Business Group
1. Vanachai Group Public Co., Ltd.
Independent Director
5. Arun Chirachavala
Company
Position
Krungdhep Sophon Group
1. Krungdhep Sophon Public Co., Ltd.
2. K.W.C. Warehouse Co., Ltd.
Director
Chairman
Other Business Group
1. Palang Sophon Co., Ltd.
2. TRC Construction Public Co., Ltd.
112
| UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Director
Independent Director and Chairman of
Corporate Governance Committee
Other Information
6. Lee Chin Yong
Company
Position
UOB Group of Companies 1. United Overseas Bank (Malaysia) Bhd.
2. Uni.Asia Capital Sdn. Bhd.
3. UOB Property Investment Pte. Ltd.
4. PT Bank UOB Indonesia
5. UOB-Kay Hian Holdings Ltd.
6. United Overseas Bank (China) Ltd.
7. UOB Property Investments China Pte. Ltd.
Director
Director
Director
Commissioner
Director
Director
Director
UOL Group of Companies 1. President Hotel Sdn. Bhd.
2. HPL Properties (Malaysia) Sdn. Bhd.
3. Grand Elite Sdn. Bhd.
4. Grand Elite (Penang) Sdn. Bhd.
5. UOL Serviced Residences Sdn. Bhd.
Director
Director
Director
Director
Director
Other Business Group
1. Kemaris Development Sdn. Bhd.
Director
7. Cheo Chai Hong
Company
Position
UOB Group of Companies
1. UOB Global Capital Pte. Ltd.
2. UOB International Investment Pte. Ltd.
3. UOB Asset Management Ltd.
Director
Director
Director
Other Business Group
1. Banco De Oro Unibank Inc.
2. The Anglo-Chinese Schools Foundation Ltd.
Director
Director
8. Peter Foo Moo Tan
-NIL9. Sanchai Apisaksirikul
Company
Position
Companies under UOB (Thai) Group
1. UOB Bullion and Futures (Thai) Co., Ltd.
2. UOB Services Co., Ltd.
Director
Chairman
Company under UOB Group
1. UOB Asset Management (Thailand) Co., Ltd.
Director
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
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113
Other Information
Senior Management as of December 31, 2014
6.
Name
Company
Position
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
AXA Insurance Public Company Ltd.
Suthep Boonnak Co., Ltd.
UOB Asset Management (Thailand) Co., Ltd.
Noble Line Ltd. / Thailand
UOB Services Co., Ltd.
-
Director
Director
Director
Director
Director
-
Steven Ngeo Swee Guan
Pornchai Wiwatpattarakul
Patchanee Vongsilpawattana
Busba Virochpoka
Viyada Valyasevi
Montira Utarapichat
Ratanachon Thanyodom
Yuttachai Teyarachakul
Wipaporn Techamaitrechit
Sirima Taecharungnirun
Wasinee Sivakua
Ngamjitt Sirijindalert
Pojanee Rungsang
Sasitorn Rattanakul
Piyaporn Ratanaprasartporn
Vajee Pramualrat
Manit Panichakul
Pailin Ngsriwongse
Ho Swit Moy Margaret
Sayumrat Maranate
Taravadee Manuschinapisit
Arthur Gan Lian Aun
Lim Keng Teck
Pisal Kattiyothaivong
Loi Kai Cheow
Poomchai Chusakultanachai
Yau Chi Choi
Kanlika Buspavanich
Sasiwimol Arayawattanapong
Danupob Apichitsakul
Roongthip Angkasirisan
Suwassa Anantasa
Shares of UOB (Thai), Subsidiaries and Associated Companies
Directors of UOB (Thai) do not own any shares in UOB (Thai) or any of its subsidiaries and associated companies.
7.
Auditor’s Remuneration
In 2014, the Bank and its subsidiaries paid for audit fee and special audit fee regarding to the Bank of Thailand’s requirement to
EY Office Limited amounting to Baht 8,300,000 and Baht 350,000 respectively, totalling Baht 8,650,000.
114
| UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
|
115
/
/
/
/
/
/
/
/
/
/
/
/
/
/
/
/
Details of all related party transations are disclosed in Note 35 to the financial statements.
UOB Kay Hian Securities (Thailand) Co., Ltd.
United Overseas Bank Group
of Companies
United Overseas Bank (Malaysia) Bhd
United Overseas Bank (China) Limited
UOB Bullion & Futures, Singapore
Far Eastern Bank Ltd., Singapore
UOB Asset Management (Thailand) Co., Ltd.
/
/
/
/
/
/
/
/
/
/
/
/
/
/
/
/
/
/
/
/
/
/
/
/
/
/
Major shareholders
United Overseas Bank Limited
/
/
/
/
/
/
/
/
/
/
/
/
/
/
/
/
Related companies
Loxley Pcl.
The Muangthai Life Assurance Pcl.
Underwaterworld Pattaya Co., Ltd.
Haw Par Tiger Balm (Thailand) Limited
Loxley Wireless Co., Ltd.
Loxbit Pcl.
Professional Computer Co., Ltd.
Netone Network Solution Co., Ltd.
L Hardware and Services Co., Ltd.
Loxley Trading Co., Ltd.
TRC Construction Pcl.
Tisco Securities Co., Ltd.
Tisco Asset Management Co., Ltd.
Subsidiaries companies
UOB Bullion and Futures (Thai) Co., Ltd.
UOB Services Co., Ltd.
/
/
/
/
/
/
/
/
/
/
/
/
/
/
/
/
/
/
/
/
/
/
Suebtrakul Soonthornthum
Suebtrakul Soonthornthum
Wee Cho Yaw
Wee Cho Yaw, Wee Ee Cheong
Suebtrakul Soonthornthum
Suebtrakul Soonthornthum
Suebtrakul Soonthornthum
Suebtrakul Soonthornthum
Suebtrakul Soonthornthum
Suebtrakul Soonthornthum
Arun Chirachavala
Sanchai Apisaksirikul
Sanchai Apisaksirikul
Sanchai Apisaksirikul
Sanchai Apisaksirikul
Related with
UOBT Director
Wee Cho Yaw
Wee Cho Yaw, Wee Ee Cheong
Wee Cho Yaw, Wee Ee Cheong
/ Wee Cho Yaw, Wee Ee Cheong
Wee Cho Yaw, Wee Ee Cheong
Wee Cho Yaw, Wee Ee Cheong
/ Wee Cho Yaw, Wee Ee Cheong
Net gain (loss)
on foreign
Interbank
Interbank
currency
Premises
and money
and money
Debt issued
Fees and Fees and trading and
Other
and
Data
market items Derivatives Other
market items Derivatives
and
Other Interest Interest service service exchange operating equipment processing
Other
(assets)
assets assets Commitments Deposits (liabilities) liabilities borrowings liabilities Income expenses income expenses transaction income expenses
charges expenses
The Bank's transactions with the companies related to the Bank's directors during the year 2014 are as follows:
8. Related Party Transactions
Other Information
Risk Management
The effective management of financial and non-financial risks is
integral to UOB (Thai) Group’s business success. Our approach
to risk management is to ensure risks are managed within the levels
established by UOB (Thai) Group’s various senior management
committees and approved by the Board and/or its committees.
The UOB (Thai) Group has established a comprehensive framework
of policies and procedures to identify, measure, monitor and control
risks. These are guided by the Group’s Risk Management Principles
which advocate:
• Delivery of sustainable long-term growth using sound risk
management principles and business practices;
• Continual improvement of risk discovery capabilities and risk
controls; and,
• Business development based on a prudent, consistent and
efficient risk management framework.
RISK MANAGEMENT GOVERNANCE AND FRAMEWORK
committees are responsible for delegating risk appetite limits by
business lines, and/or broad product lines.
RISK APPETITE
UOB (Thai) Group has established a risk appetite framework to
determine the amount of risk UOB (Thai) Group is able and willing
to take in pursuit of its business objectives. The risk appetite defines
suitable thresholds and/or limits across key areas including but not
limited to credit risk, concentration risk, market risk, liquidity risk,
operational risk and reputational risk. The objective of establishing
a risk appetite framework is not to limit risk taking but to ensure
that UOB (Thai) Group’s risk profile is aligned to its business
strategy.
UOB (Thai) Group’s risk appetite framework is updated and
approved annually by the Board. The Board is responsible for
ensuring that UOB (Thai) Group’s activities are in line with its risk
appetite. Monitoring of the risk limits is conducted regularly by
relevant Committees.
The Board of Directors (The Board) is responsible for the governance
of risk and oversees a governance structure to ensure that the
UOB (Thai) Group’s business activities are:
BASEL FRAMEWORK
• Conducted in a safe and sound manner and in line with high
standards of professionalism;
• Consistent with UOB (Thai) Group’s overall business strategy
and risk appetite; and,
• Subjected to adequate risk management and internal controls.
UOB (Thai) Group has adopted the Basel Framework and is
compliant with regulatory requirements on Risk Based Capital
Adequacy. The Framework aims to ensure the ongoing
enhancement of risk management techniques by banks to monitor
and manage their risks, and to ensure proper processes are
undertaken by banks in determining the adequate amount of capital
to be held in relation to their underlying risk profile.
The Board is supported by Executive Committee (EXCO), Audit
Committee (AC), Nomination and Remuneration Committee (NCC)
as well as Risk and Capital Committee (RCC). EXCO and RCC
assist the Board in the oversight of risk management policies,
process and procedures.
The day-to-day management of UOB (Thai) Group is delegated to
its senior management (Chief Executive Officer (CEO) and Senior
Executives).
The CEO has established senior management committees to assist
in the making business decisions which weigh risks with returns.
The main senior management committees are Management
Committee (MC), Asset & Liability Committee (ALCO), Operational
Risk Management Commitee (ORMC), Credit Committee (CC),
Special Asset Management Credit Committee (SAMCC) and Credit
Management Committee (CMC).
UOB (Thai) Group has adopted the Standardised Approach (SA)
for its Personal Financial Services (PFS) exposures, the Foundation
Internal Ratings-Based (FIRB) Approach for its non-retail exposures
and the Advanced Internal Ratings-Based (AIRB) Approach for its
Retail SME exposures. For Market and Operational risks, UOB
(Thai) Group has adopted SA.
UOB (Thai) Group’s Internal Capital Adequacy Assessment Process
(ICAAP) is used to assess if it has sufficient capital to support its
activities. The ICAAP process is reviewed periodically to ensure
that UOB (Thai) Group remains well capitalised after considering
all material risks. Stress Testing is also conducted to determine
capital adequacy under stressed conditions.
UOB (Thai) Group Pillar 3 Disclosure Policy addresses the disclosure
requirements specified by regulators.
The Board is also responsible for setting the overall risk capital and
Top-Down Risk Appetite statements for material risks faced by
UOB (Thai) Group. Senior management and the senior management
116
| UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Risk Management
CREDIT RISK
Credit risk is the risk of loss arising from any failure by a borrower
or counterparty to meet their financial obligations when they fall
due. Credit risk is the single largest risk that UOB (Thai) Group
faces in our core business as a commercial bank, arising primarily
from loans and other lending related commitments to retail
corporate and institutional borrowers.
Integral to the management of credit risk is a framework that clearly
defines policies and processes relating to the measurement and
management of credit risk. Our portfolio is also reviewed and stress
tested regularly, and we continuously monitor the operating
environment to identify emerging risks and formulate mitigation action.
percentage of the capital base. Regular assessments of emerging
risks and reviews of industry and country outlooks are also performed
to identify areas in which concentration risks may accumulate.
Credit Stress Test
Credit stress testing is a core component of UOB (Thai) Group’s
credit portfolio management process. Regulatory and internal stress
tests are conducted periodically. The main purpose of credit stress
testing is to provide a forward looking assessment of UOB (Thai)
Group credit portfolio under adverse economic scenarios. Under
stress scenarios such as a severe recession, significant losses from
the credit portfolio may occur. Stress tests are used to assess if
UOB (Thai) Group capital can withstand such a severe scenario,
identify the vulnerability of various business units under such
scenario and formulate appropriate mitigating action.
CREDIT RISK GOVERNANCE AND ORGANIZATION
RCC and CMC are the key oversight committees for credit risk and
support the CEO, EXCO and the Board in managing the UOB (Thai)
Group’s overall credit risk exposures. The RCC serves as an
executive forum for discussions on all credit-related issues including
the credit risk management framework, policies, infrastructure,
methodologies and systems. While the CMC reviews and assesses
UOB (Thai) Group’s credit portfolios, processes and credit risk
profiles.
Credit Risk Management Division is responsible for the reporting,
analysis and management of all elements of credit risk. It develops
credit policies and guidelines, and focuses on facilitating business
development within a prudent, consistent and efficient credit risk
management framework.
CREDIT RISK POLICIES AND PROCESSES
UOB (Thai) Group established credit policies and processes to
manage credit risk in the following key areas:
Credit Approval Process
To maintain the independence and integrity of the credit approval
process, the credit origination and approval functions are clearly
segregated. Credit approval authority is delegated to officers based
on their experience, seniority and track record, and is based on a
risk-adjusted scale according to a borrower’s credit rating. All credit
approval officers are guided by credit policies that are periodically
reviewed to ensure their continued relevance to the UOB (Thai)
Group’s business strategy and the business environment.
Credit Concentration Risk
Credit concentration risk may arise from a single large exposure
or from multiple exposures that are closely correlated. This is
managed by setting exposure limits on obligors, portfolios,
borrowers, industries and countries, generally expressed as a
Our stress test scenarios consider an array of potential and plausible
macroeconomic events in varying degrees of likelihood and severity.
These are developed through consultation with relevant business
units, and are approved by senior management. The projected
stressed variables such as GDP, interest rates are applied
consistently to all portfolios to estimate credit losses.
Intra-group Transaction
Any intra-group transactions shall be executed on an arms-length
basis at market commercial terms. Risk exposure as well as impact
on capital adequacy incurred from intra-group transactions shall
be monitored and controlled as a normal business practice. UOB
(Thai) Group has stipulated the approval process for intra-group
transactions e.g. normal intra-group transactions such as granting
credit, which is subject to approval by UOB (Thai) Executive
Committee with ratification by the Board.
Credit Risk Mitigation
Potential credit losses are mitigated using collateral and guarantees.
As a fundamental credit principle, UOB (Thai) Group generally does
not extend credit facilities solely on the basis of the collateral
provided. All credit facilities are granted based on the credit standing
of the borrower, source of repayment and debt servicing ability.
Collateral is taken whenever possible to mitigate the credit risk
assumed and the value of the collateral is monitored periodically.
The frequency of valuation depends on the type, liquidity and
volatility of the collateral value as well as in accordance with BOT’s
requirements. The main types of collateral taken by UOB (Thai)
Group are cash, qualified marketable securities, and real estate.
Appropriate haircuts are applied to the market value of collateral,
reflecting the underlying nature of the collateral, quality, volatility
and liquidity. In addition, collateral taken by UOB (Thai) Group has
to fulfill certain eligibility criteria (such as legal certainty across
relevant jurisdictions) in order to be eligible for IRB purposes.
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
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Risk Management
In addition, personal guarantees are often taken as a form of moral
support to ensure moral commitment from the principal shareholders
and/or directors. UOB (Thai) Group does not recognise personal
guarantees as an eligible credit risk protection for capital
computation purpose. Corporate guarantees are also often
obtained when the borrower’s credit worthiness is not sufficient to
justify an extension of credit.
Exposures arising from foreign exchange and derivatives are
typically mitigated through agreements such as the International
Swaps and Derivatives Association (ISDA) Master Agreements and
the Credit Support Annex (CSA). Such agreements help to minimise
credit exposure by allowing UOB (Thai) Group to offset what it owes
to counterparty against what is due from that counterparty in the
event of a default.
CREDIT MONITORING AND REMEDIAL MANAGEMENT
We regularly monitor credit exposures, portfolio performance and
emerging risks that may impact our credit risk profile. Internal risk
reports are presented to relevant committees to update senior
management on credit trends and to provide alerts on key
economic, political and environment developments across major
portfolios.
Non-performing Accounts Management
UOB (Thai) Group monitors closely the delinquency of borrowing
accounts as it is a key indicator of credit quality. UOB (Thai) Group
has an independent credit review process to ensure the
appropriateness of loan grading and classification in accordance
with internal policy and regulatory guidelines. Any account that
exhibits weaknesses that may jeopardise repayment on existing
terms will be categorised as ‘non-forming’.
Delinquency Monitoring
An account is considered as delinquent when payment is not
received on the due date. Any delinquent account, including a
revolving credit facility (such as an overdraft) with limit excesses,
is closely monitored and managed through a disciplined process
by officers from business units and risk management. Where
appropriate, such accounts are also subject to more frequent credit
reviews.
Classification and Loan Loss Impairment
UOB (Thai) Group classifies its loan portfolios according to the
borrower’s ability to repay the credit facility from their normal source
of income. All borrowing accounts are classified into ‘Pass’, ‘Special
Mention’ or ‘Non-Performing’ categories. Non-Performing loans
(NPLs) are further classified as ‘Substandard’, ‘Doubtful’ or
‘Doubtful of Loss’ in accordance with Bank of Thailand (BOT)
guidelines.
118
Upgrading and declassification of a NPL account to ‘Pass’ or
‘Special Mention’ status must be supported by a credit assessment
of the repayment capability, cash flows and financial position of
the borrower. UOB (Thai) Group must also be satisfied that once
the account is declassified, the account is unlikely to be classified
again in the near future.
A restructured account is categorised as “Non-Performing” and
placed on the appropriate classified grade depending on UOB
(Thai) Group’s assessment of the financial conditions of the
borrower and the ability of the borrower to repay based on the
restructured terms. A restructured account must comply fully with
the restructured terms in accordance with internal policy and
regulatory requirements before it can be declassified.
Special Asset Management
Special Asset Management (SAM) manages the non-performing
portfolios of UOB (Thai) Group. SAM proactively manages a portfolio
of NPL accounts, with the primary intention of nursing these
accounts back to health and transferring them back to the
respective business units. SAM manages accounts that UOB (Thai)
Group intends to exit in order to maximise debt recovery.
Write-off Policy
A classified account that is not secured by any realisable collateral
will be written off either when the prospect of a recovery is
considered poor or when all feasible avenues of recovery have
been exhausted.
INTERNAL CREDIT RATING SYSTEM
UOB (Thai) Group employs internal rating models to support the
assessment of credit risk and the assignment of exposures to rating
grades or pools. Internal ratings are used pervasively by UOB (Thai)
Group in the areas of credit approval, credit review and monitoring,
credit stress testing, limits setting, pricing and account management.
UOB (Thai) Group has established a credit rating governance
framework to ensure the reliable and consistent performance of its
rating systems. The framework defines the roles and responsibilities
of the various parties in the credit rating process, including
independent model performance monitoring, annual model
validation and independent reviews by Internal Audit. Credit risk
models are independently validated before they are implemented
to ensure they are fit for purpose. To monitor the robustness of
these rating models on an ongoing basis, all models are subject
to annual review conducted by model owners to ascertain that the
chosen risk factors and assumptions continue to remain relevant
for the respective portfolios. All new models, model changes and
annual reviews are approved by RCC or EXCO, depending on the
materiality of the portfolio.
| UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Risk Management
Rating Structure
UOB (Thai) Group’s internal rating structure is illustrated below.
Internal Rating Structure
Large Corp
Corporate SME
Specialised Lending
(IPREa, SFb, CFc and PFd)
Bank
Sovereign
Retail SME
Customer Risk Rating
Facility Risk Rating
Borrower Risk Rating
Customer Risk Rating
Customer Risk Rating
Expected Loss Rating
16 Pass Grades
4 Default Grades
Supervisory
Grades
15 Pass Grades
Homogeneous
Risk Pools
Derive Risk Estimates
Use of Internal Estimates
Credit Approval
Stress Test
Collections
Credit Review & Monitoring
Limits Setting & Monitoring
Risk-based Pricing
a. IPRE refers to Income Producing Real Estate
b. SF refers to Ship Finance
c. CF refers to Commodity Finance
d. PF refers to Project Finance
Non-retail Exposures
UOB (Thai) Group has adopted the Foundation Internal RatingsBased (FIRB) approach for its non-retail exposures. Under this
approach, the probability of default (PD) for each borrower is
estimated using internal models. These PD models employ
qualitative and quantitative factors to provide an assessment of the
borrower’s ability to meet their financial obligations, and are
calibrated to provide an estimate of the likelihood of default over
one-year time horizon. A default is considered to have occurred if:
Supervisory loss given default (LGD) and exposure at default (EAD)
parameters prescribed by BOT are used together with the internal
credit ratings to calculate risk weights and regulatory capital
requirements.
• the obligor is unlikely to pay its credit obligations to the Group
in full, without recourse by the Group to actions such as realising
the security; or
• the obligor is past due for more than 90 days on any credit
obligation to the Group.
Corporate Asset Class
UOB (Thai) Group has developed the Corporate SME model (CSME)
to rate exposures in the Claims on Corporate Asset Class. Credit
risk factors used to derive a borrower’s risk rating include its’
financial strength, quality of management, business risks, and the
industry in which it operates. The borrower risk rating process is
While the Group’s internal risk rating grades may show some
correlation with the rating grades of External Credit Assessment
Institutions (ECAIs), they are not directly comparable or equivalent
to the ECAI ratings.
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
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Risk Management
augmented by facility risk ratings, which take into account the type
and structure of the facility, availability and type of collateral, and
seniority of the exposure.
The internal rating grade structure for the Corporate asset class
consists of 16 pass grades and 4 default grades. The CSME model
is mapped to the rating scale and takes into account UOB (Thai)
Group’s long-term average portfolio default rate.
Specialised Lending Asset Sub-Class
Within the corporate asset class, UOB (Thai) Group has four subclasses for Specialised Lending: Income Producing Real Estate
(IPRE), Ship Finance (SF), Commodity Finance (CF) and Project
Finance (PF). The internal risk grades are derived based on financial
and non-financial risk factors using internal scorecards. The internal
risk grades are mapped to the five supervisory slotting categories,
which determine the risk weights to be applied to the exposures.
Sovereign Asset Class
UOB (Thai) Group has rolled out internal Sovereign scorecard to
rate exposures in this asset class. Public debt levels, balance of
payments, fiscal budgets and other macroeconomic, stability and
political risk factors are considered in the scorecard to assess
sovereign credit risk in a structured and holistic manner. The
scorecards have an internal rating grade structure consisting of 15
pass grades.
Bank Asset Class
UOB (Thai) Group has rolled out internal Bank scorecard to rate
exposures in this asset class, which takes into account asset quality,
capital adequacy, liquidity, management, regulatory environment
and robustness of the overall banking system. The scorecards have
an internal rating grade structure consisting of 15 pass grades.
Retail Asset Class
UOB (Thai) Group has adopted the AIRB Approach for the Retail
SME portfolio, which is classified under the Other Retail asset subclass. Retail SME exposure is defined as an exposure to small
businesses with total group obligor exposure of not more than THB
45 million. In addition, the exposure is not managed individually
but as part of a pool of similar exposures.
Retail SME exposures are assessed and managed using a
combination of Application and Behavioural scorecards, Loss Given
Default (LGD) and Exposure at Default (EAD) models to group
exposures according to their borrower and transaction risks. PD,
LGD and EAD parameters are estimated using internal loss data
covering an economic cycle including downturns. Where internal
loss data is insufficient to provide robust risk estimates, the PD,
LGD and EAD models may incorporate internal and/or external
proxies, and where necessary, may be augmented with appropriate
margins of conservatism.
120
Credit Exposures Subject To Supervisory Prescribed Risk
Weight
Equity Asset Class
According to BOT’s guidelines, UOB (Thai) Group is eligible to apply
100% risk weight to equity exposures which have been exempted
from IRB capital computation.
Credit Exposures Subject To Standardised Approach
For exposures subject to the SA, prescribed risk weights based
on asset class are used in the computation of regulatory capital
except for Claims on Corporate where 100% risk weight is applied.
MARKET RISK
Market risk is governed by the Asset and Liability Committee
(ALCO), which meets monthly to review and provide directions on
market risk matters. The Market Risk Management Unit (MRM)
supports the ALCO with independent assessment of the market
risk profile of UOB (Thai) Group.
UOB (Thai) Group’s market risk framework comprises market risk
policies, practices, control, and risk limits structure with appropriate
delegation of authority. In addition, we have a stringent Product/
Service Programme due diligence process in place to ensure that
market risk issues are adequately addressed prior to product launches.
UOB (Thai) Group currently adopts the Standardised Approach for
the calculation of regulatory market risk capital but uses daily Valueat-Risk (VaR) to measure and control trading market risks. To
complement the VaR measure, stress and scenario tests are
performed to identify UOB (Thai) Group’s vulnerability to event risk.
These tests serve to provide early warnings of plausible extreme
losses to facilitate proactive management of market risks.
In addition, VaR estimates are backtested against profit and loss
of the trading book to validate the robustness of the methodology.
The backtesting process analyses whether exceptions are due to
model deficiencies or market volatility.
INTEREST RATE RISK IN BANKING BOOK
The ALCO maintains oversight of the effectiveness of the interest
rate risk management structure. Balance Sheet Risk Management
Unit (BSRM) supports the ALCO in monitoring the interest rate risk
profile of the Banking book.
The primary objective of interest rate risk management is to protect
and enhance capital or economic net-worth through adequate,
stable and reliable growth in net interest earnings under a broad
range of possible economic conditions. This is achieved by ensuring
that the structural nterest rate risk is identified, measured, monitored
| UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Risk Management
and managed over a range of potential and realistic interest rate
scenarios, including under stress situations.
funding as well as maintaining a portfolio of high quality and
marketable debt securities.
Interest rate risk assessment is mainly based on earnings
perspective known as Net Interest Income (NII) and economic value
perspective known as Economic Value of Equity (EVE). The impact
of interest rate sensitivity is measured via static analysis. In the
earnings perspective, the focus of the analysis is on the impact of
changes in interest rates on earnings, typically looking at near term.
The economic value of the bank provides a long-term effect of
changes in interest rate, which is the net present value of assets,
minus liabilities plus the off balance sheet position. In repricing gap
approach, the cash flows are profiled in different time bands based
on repricing schedule. For loans and deposits that do not have
maturity dates such as saving account deposit, the earliest possible
repricing dates will be taken into consideration. Mismatches in the
longer tenor from repricing gap will experience greater change in
the price-value of interest rate positions than similar positions in
the shorter tenor.
UOB (Thai) Group takes a conservative stance in its liquidity
management by continuing to gather core deposits, ensuring that
liquidity limits are strictly adhered to and that there are adequate
liquid assets to meet cash shortfall.
In addition, UOB (Thai) Group performs monthly interest rate stress
testing to assess the impact of interest rate NII and EVE. The parallel
rate shocks such as 100 basis points (bp) and 200bp are applied
to the repricing gap profile. Such tests are performed to provide
early warnings of potential losses, facilitating the proactive
management of interest rate risks.
The risks arising from the trading book, such as interest rates,
foreign exchange rates and equity prices are managed and
controlled under the market risk framework that is discussed under
the ‘Market Risk’ section.
LIQUIDITY RISK
Liquidity risk is the risk that UOB (Thai) and its subsidiaries may not
be able to meet their obligations as they fall due as a result of
inability to liquidate their assets or to cover funding requirements
at an appropriate price, resulting in losses to the Bank and its
subsidiaries.
UOB (Thai) Group maintains sufficient liquidity to fund its day-to-day
operations, meet deposit withdrawals and loan disbursements,
and repay borrowings. Hence, liquidity is managed in a manner to
address known as well as unanticipated cash funding needs.
UOB (Thai) Group manages liquidity at a centralised level. Liquidity
risk is managed in accordance with a framework of policies, controls
and limits established by UOB (Thai)’s ALCO. These policies,
controls and limits enable the Bank to monitor and manage liquidity
risk to ensure that sufficient sources of funds are available over a
range of market conditions. These include minimising excessive
funding concentrations by diversifying the sources and terms of
The distribution of deposits is managed actively to ensure cost
effectiveness, continued accessibility to funds, and diversification
of funding sources. Important factors in ensuring liquidity are
competitive pricing, proactive management of UOB (Thai) Group’s
core deposits and the maintenance of customer confidence. Core
deposits are generally stable non-bank deposits, such as current
accounts, savings accounts and fixed deposits. UOB (Thai) Group
monitors the stability of its core deposits by analysing their volatility
over time.
UOB (Thai) Group uses of funds are mainly for providing loans to
customers, investing in government securities, and placing excess
funds with financial institutions.
UOB (Thai) Group’s liquidity risk management is aligned with the
regulatory liquidity risk management framework, and is measured
and managed on a projected cash flow basis. UOB (Thai) Group
is monitored under ‘business as usual’, and three crisis scenarios,
which are ‘bank-specific crisis’, ‘general market crisis’, and
‘combination crisis’. Cash flow mismatch limits are established to
limit the Bank’s liquidity exposure. The Bank also employs liquidity
early warning indicators and trigger points to signal possible
contingency situations.
Liquidity Gap Analysis or Cash Flow Mismatch Analysis under the
‘Business as Usual’ scenario is measured and monitored against
Net Cumulative Outflow (NCO) limits which are set for overnight,
seven days, and thirty days. In the event that a limit is breached,
an investigation will be conducted and the related documents
reported to relevant parties, in accordance with the escalation
process.
For stress testing (bank-specific crisis, general market crisis, and
combined scenarios), additional assumptions such as sudden
increase in deposit withdrawals, reduction in loan repayments,
potential trading losses, or liquidation of securities with haircuts,
are taken into account. These assumptions are agreed by business
units and approved by the Board or delegated committee.
Liquidity risk assessment is conducted on both daily and monthly
basis. Liquidity gap or maturity mismatch analysis report is
produced by Balance Sheet Risk Management unit and monitored
by Market Risk Control against approved NCO Limits on a daily
basis. Other reports such as early warning indicators as well as
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
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121
Risk Management
sources and utilisation of funds are produced on a monthly basis.
These reports are deliberated in ALCO meetings.
Behavioural modelling is carried out and reviewed regularly to ensure
that the cash flow requirements for the ‘business as usual’ and
crisis scenarios are realistic. Loans and deposits which do not have
maturity dates, and fixed deposits which are rolled over frequently,
are generally estimated based on their past statistics or trends.
Other balance sheet items like credit cards are generally estimated
based on the past statistics of customers. Cash flow mismatch
limits are established to limit the UOB (Thai) Group liquidity
exposure. UOB (Thai) Group also employs liquidity early warning
indicators and trigger points to signal possible contingency
situations.
Contingency funding plans are in place to identify liquidity crises
using a series of warning indicators. Crisis escalation processes
and various strategies including funding and communication have
been developed to minimise the impact of any liquidity crunch.
Loans to Deposits and Bill of Exchange (interbank and money
market items are excluded) are among the liquidity ratios monitored.
OPERATIONAL RISK
Operational Risk is the risk of loss resulting from inadequate or
failed internal processes, people and systems, or from external
events, including reputation, legal and compliance risks but
excluding strategic risk.
The objective is to manage operational risk at appropriate levels
relative to the markets in which the businesses operate.
Operational Risk Governance, Framework and Tools
Operational risk is managed through a framework of policies, and
procedures by which business and support units properly identify,
assess, monitor, mitigate and report their risks. The Operational
Risk Management Committee attended by senior management
meets monthly to provide oversight of operational risk matters
across the UOB (Thai) Group.
The Operational Risk Governance structure adopts the Three Lines
of Defence Model. The businesses as the first line of defence, are
responsible for establishing a robust control environment as part
of their day-to-day operations. Each Line of Business is responsible
for implementing the operational risk framework and policies,
embedding appropriate internal controls into processes and
maintaining business resilience for key activities. Operational Risk
Management as the second line of defence is responsible for risk
management oversight and exercising governance over operational
risk through providing relevant framework, policies, tools and
system to manage the operational risk, quality assurance of internal
122
controls, operational risk measurement, monitoring and reporting
of operational risk issues to senior management, relevant
management committees and the Board.
Internal Audit acts as the third line of defence by providing an
independent and objective assurance on the overall effectiveness
of the risk governance framework, and internal control effectiveness
through periodic audit programme.
A key component of the operational risk management framework
is risk identification and control self-assessments. This is achieved
through the implementation of a set of operational risk tools. Several
risk mitigation policies and programmes are in place to maintain a
sound operating environment.
UOB (Thai) Group has a business continuity and crisis management
programme in place to ensure prompt recovery of critical business
functions should there be unforeseen events. Senior management
provides an annual attestation to the Board on the state of business
continuity readiness of the UOB (Thai) Group.
Regulatory compliance risk refers to the risk of non-compliance
with laws, regulations, rules, standards and codes of conduct. This
risk is identified, monitored and managed through a structured
framework of policies, procedures and guidelines maintained by
the UOB (Thai) Group. The framework also manages the risk of
breaches and sanctions relating to Anti-Money Laundering and
Countering the Financing of Terrorism.
The UOB (Thai) Group actively manages fraud and bribery risks.
Tools and policies, including a whistle-blowing programme, a
material risk notification protocol and a fraud risk awareness training
programme, have been developed to manage such risks. All
employees are guided by a Code of Conduct, which includes antibribery and corruption provisions.
Reputation risk is the risk of adverse impact on earnings, liquidity
or capital arising from negative stakeholder perception or opinion
on the UOB (Thai) Group’s business practices, activities and
financial condition. The UOB (Thai) Group recognises the impact
of reputation risk and a framework has been developed to identify
and manage the risk across the UOB (Thai) Group.
To mitigate operational losses resulting from significant risk events,
an insurance programme covering crime, fraud, civil liability,
property damage, public liability and, directors’ and officers’ liability
has been put in place.
| UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Report of the Audit Committee
The Audit Committee (“the AC”) of United Overseas Bank (Thai) Pcl. comprises three independent directors: Mr. Arun Chirachavala,
the AC Chairman, Mr. Chinnawat Bulsuk and Mr. Suebtrakul Soonthornthum as Committee members. All the Committee members are
non-executive directors and non-employees of the Bank.
In 2014, the Committee held four meetings to review the Bank’s internal control system and discuss financial and operational audit
issues with the Bank’s External and Internal Auditors. Relevant Management members were invited to attend the meetings to provide
additional information and clarification of the internal control systems.
Major matters in the meetings were as follows:
• Approved the Annual Planned Schedules for the Audit Committee Meetings
• Approved and monitored the Internal Audit Year Plan, the Internal Audit 3-Year Strategic Plan, and resources of the Internal Audit
• Evaluated the Performance Evaluation of the Head of Internal Audit
• Reviewed and approved the Audit Committee Charter and the Policy on Fraud with no change
• Reviewed and approved the revision of the Internal Audit Charter and the Whistle-Blowing Policy
• Reviewed the Scope and Results of the Audit and Key Accounting and Auditing Areas, including the meetings (non-executive
session) held with the External Auditor (EY)
• Reviewed and discussed the adequacy and effectiveness of the Bank’s Internal Control System with the Senior Management,
Internal and External Auditors as well as the Management’s Responses to the control deficiencies and timely remedial actions taken
• Reviewed the major items of the financial reports, the Management Letter (ML) and the reliability of those reports, and the
reasonableness of the Connected and Related Parties’ transactions
• Reviewed and proposed the re-appointment of the external auditor and the audit fee to the Board of Directors for approval
• Reviewed and noted the Internal Audit quarterly reports, major findings and status updates including the compliance with internal
and external regulations
• Noted the Group Audit report including key initiatives and progresses
• Noted the Internal Audit for the Quality Assurance Review (QAR) program (External Assessment) and its result that was rated as
“Generally Conforms” with the Institute of Internal Auditors’ Standards (The IIA’s Standards), and approved the re-conduct of the
External Assessment performed by Protiviti, the external assessor
• Noted the Compliance and Risk Management quarterly reports
• Noted the implementation issues, progresses, and audit result of Basel II - Internal Ratings Based Approach (IRBA), the Internal
Capital Adequacy Assessment Process (ICAAP), and Basel III
• Noted the regulators’ audit results and implementation progresses, e.g., the BOT, MAS and etc.
The Committee has continuously reviewed and assessed the Bank’s key risks, controls, governance and monitoring system through
the Bank’s Internal Audit and upon the discussions with the External Auditor and Senior Management. From the evaluation of the
Bank’s Internal Control System, it was concluded that the Bank’s Internal Control in the areas of financial reporting and risk management
is adequate and reliable, and that reinforces the Bank to continue to improve the overall internal control framework.
Mr. Suebtrakul Soonthornthum
Acting Chairman of the Audit Committee
6 March 2015
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
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123
Opinion of the Audit Committee on the Bank’s Internal Control System
The Board of Directors has reviewed the Audit Committee report and the opinion on the adequacy of Internal Control System prepared
by the Audit Committee during the Board of Directors’ Meeting No. 592 held on 6 March 2015. Participants of the meeting included
the Audit Committee members comprising the two independent directors who are not employees of the Bank.
The Audit Committee’s opinion on the Internal Control System of the Bank and its subsidiaries was summarised after the meetings with
the Senior Management and External Auditor, and upon the report of the Key Risk and Control Self-Assessment (KRCSA) implemented
by Operational Risk Management (ORM), and the Quarterly Reports by Risk Management, Compliance and Internal Audit.
The evaluation of the Bank’s Internal Control System was divided into five sections as follows:
•
•
•
•
•
Organisation Control and Environment Measures
Risk Management Measures
Management Control Activities
Information and Communication Measures
Monitoring and Evaluation
The Audit Committee is of the opinion that the Bank has in place an adequate internal control system. The Audit Committee has been
regularly notified of the issues arisen and remedial actions taken.
The External Auditor of the Bank is EY Office Limited (EY) of which Ms. Ratana Jala, a Certified Public Accountant (CPA), as Designated
External Auditor, has examined and given her opinion that the Bank and its subsidiaries’ Financial Statements present fairly, in all material
respects, the financial position of United Overseas Bank (Thai) Public Company Limited and its subsidiaries and of United Overseas
Bank (Thai) Public Company Limited as at 31 December 2014, and the results of their operations, and cash flows for the year then
ended in accordance with generally accepted accounting principles.
Mr. Suebtrakul Soonthornthum
Acting Chairman of the Audit Committee
6 March 2015
124
| UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Report of the Nomination and Compensation Committee
The Nomination and Compensation Committee is appointed by the Board of Directors, and consists of an Independent Director as the
Committee Chairman, and another Independent Director, and 2 Directors as members of the Committee as follows:
1)
2)
3)
4)
Mr. Chinnawat Bulsuk*
Mr. Suebtrakul Soonthornthum
Mr. Wee Ee Cheong
Mr. Francis Lee Chin Yong
Chairman
Member
Member
Member
* Appointment effective from 2 August 2014
The Nomination and Compensation Committee held 4 meetings in 2014.
The Nomination and Compensation Committee is responsible for the setting up of policies and criteria for considering the selection and
remuneration of the Bank’s Board members and the Bank’s senior management which includes the following:
•
•
Review the nomination of qualified Board Directors, CEO and Management from Executive Director (ED) level and above, including
any internal promotions to the rank of ED and above;
Recommend the remuneration of the Board Directors and review the remuneration of the senior management team.
In selecting a Board Director, CEO and Senior Management, the factors to be taken into consideration, in addition to all applicable
regulatory requirements, include the candidate’s academic qualifications, personal character, technical and leadership competence,
employment and career experience, and his or her management philosophy and management vision. The successful candidate must
share the Board’s and Management’s philosophy and vision in managing the financial institution in order to ensure that the institution’s
goals are met. Furthermore, the candidate must share the same beliefs that will help establish mutual trust and close working relationships
with the Board and with the Senior Management team. The Nomination and Compensation Committee will review the successful
candidate for suitability before the bank proceeds to obtain approval from the Bank of Thailand and from the Board of Directors.
In setting compensation for 2014 as disclosed in this Annual Report, the scale and component of remuneration for the Directors,
Executive Directors, Non-Executive Directors, and Senior Management are comparable to the general practice in the financial industry
with regard to work experience and the Bank’s overall performance results and in accordance with the principles and policies which
have been approved by the Board and shareholders.
The Bank believes in the remuneration policy and principle of meritocracy – which is to ensure that each staff including that of senior
management is rewarded and recognized based on his or her level of performance and contribution to the Bank.
The Nomination and Compensation Committee will, based on the bank’s financial performance, market and industry rewards trends,
as well as on GDP and inflation rate projections, propose the annual staff remuneration increment and bonus rates to the Board of
Directors for consideration and approval in the first quarter of each year.
Mr. Chinnawat Bulsuk
Chairman, Nomination & Compensation Committee
5 February 2015
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
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125
Corporate Governance
United Overseas Bank (Thai) Public Company Limited (the “Bank”),
a subsidiary of United Overseas Bank Limited (“UOB”), is committed
to maintaining good corporate governance. The Bank believes that
good corporate governance is fundamental to sustaining business
growth, as well as safeguarding the interests of all stakeholders
including shareholders, employees, business partners, customers,
government entities with supervisory authority and auditors. The
Bank has established a Code of Conduct (the “Code”) for the
guidance of all employees, including the Management
team. This Code sets out the best practices that all employees
should follow to uphold the Bank’s core values of integrity,
teamwork, performance excellence, and trust and respect.
The Board of Directors (the “Board”) has set up various board
committees to assist the Board in overseeing the Bank. The Bank
has in place a comprehensive system of internal controls to
safeguard its business and the interests of its stakeholders including
depositors.
Control Systems, Risk Management, Compliance and
Internal Audit
The Board and Management recognise the importance of having
robust internal controls, as well as effective risk management,
compliance and internal audit functions. The Bank has set up
various committees which assist the President and CEO in
overseeing the day-to-day operations of the Bank. All business
and support units within the Bank are expected to comply with the
governance guidelines on internal controls and ethics. Internal
control activities form an integral part of operational processes.
The Bank has established appropriate dual controls segregating
the operational functions and the control and monitoring functions
to achieve appropriate checks and balances.
Internal Audit is an independent unit that reports directly to the
Audit Committee. The Internal Audit team comprises qualified staff
and is responsible for assessing the adequacy and effectiveness
of the Bank’s system of internal controls, risk management and
governance processes. The operations of Internal Audit are
assessed by an external assessor every five years. Based on the
results of the latest external assessment conducted in 2014, Internal
Audit generally conforms to the International Professional Practices
Framework (IPPF) of Internal Auditing, and complies with UOB
Group’s audit methodologies.
Directors’ Reporting
The Board is responsible for the Bank’s and its subsidiaries’
consolidated financial statements and for the financial information
presented in this Annual Report. The financial statements have
been prepared in accordance with the accounting standards
enunciated under the Accounting Professions Act B.E. 2547, and
in reliance on governing policies, careful judgment and best
estimates. Important information is adequately disclosed in the
notes to the financial statements. The independent certified public
accountants, having reviewed the financial statements and its notes,
have issued an unqualified audit opinion of the financial statements.
The Bank’s financial statements reflect the true and transparent
financial status and performance for the information of shareholders.
The Board has prescribed and maintained oversight of an effective
system of internal controls, compliance and internal audit to ensure
that accounting records are accurate, complete and adequate to
protect the Bank’s assets and its depositors’ interests, and uncover
weaknesses to prevent operational risk or materially irregular
operations.
Board of Directors
The Risk Management function is responsible for putting in place
the strategy, policies and processes to identify, measure, control
and report risks of the UOB (Thai) Group. To perform its role
effectively, it works with the relevant senior management
committees as well as business and support functions to develop
appropriate frameworks, strategies, processes and procedures to
manage and monitor risks. Details of the Bank’s risk management
are set out in the ‘Risk Management’ section of this Annual Report
and Pillar III disclosure on the Bank’s website.
Compliance is an independent function within the Bank that manages
compliance risks and reports directly to the Board. Compliance is
responsible for communicating, educating and advising all units in
the Bank on applicable regulatory development and the impact on
the business practices, as well as conducting compliance reviews
and tests with a view to ensuring that the Bank conducts its business
in compliance with all applicable laws, regulations and measures
against money-laundering, terrorism and financial crime.
126
The Board consists of nine qualified directors, three of whom are
independent directors and not less than half of the total members
reside in the Kingdom. The Board meets at least once every three
months and no fewer than half of the total number of directors
must be present to constitute the quorum for a meeting.
The Board’s main roles and duties include providing strategic
directions and approving key policies of the Bank, as well as putting
in place an effective Management team and monitoring their
performance. The Board has delegated certain functions to four
board committees, namely the Executive Committee, Audit
Committee, Nomination and Compensation Committee, and Risk
and Capital Committee. The Board may also appoint one or several
directors or any other person to perform any acts on its behalf.
| UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Corporate Governance
The Board members are:
Wee Cho Yaw
Wee Ee Cheong
Chinnawat Bulsuk
Suebtrakul Soonthornthum
Arun Chirachavala
Lee Chin Yong
Cheo Chai Hong
Peter Foo Moo Tan
Sanchai Apisaksirikul
Audit Committee
Chairman
Deputy Chairman
Independent Director
Independent Director
Independent Director
Director
Director
Director
Director
The Audit Committee (“AC”) consists of three independent directors.
Its main responsibilities are to provide oversight of the:
a)
b)
c)
d)
appropriateness and efficiency of the internal control systems;
quality of the financial reports;
Internal Audit function;
selection and nomination of the external auditors, including
determining the external auditors’ remuneration; and
e) disclosure of related-party transactions or transactions where
conflict of interests may occur.
Executive Committee
The main responsibilities of the Executive Committee (“EXCO”)
include:
a) reviewing and approving business policies and strategies,
risk management policies and guidelines, and other policy
matters;
b) monitoring the progress of the Bank’s business plans and
operations;
c) setting credit discretionary limits;
d) approving or ratifying approvals for credit applications and
debt restructuring cases;
e) endorsing relevant Internal Capital Adequacy Assessment
Process (“ICAAP”) documents, including the framework for
ICAAP, stress test framework, capital related policies and
capital plan; and
f) performing such other functions and exercising such other
power and authority as may be delegated by the Board.
The EXCO empowers the President and CEO to set up senior
management committees where necessary as well as to appoint
the members and determine the scope of duties and responsibilities
of such committees. The senior management committees
established by the EXCO, namely the Management Committee,
Assets and Liabilities Committee, Credit Committee, IT Committee,
Credit Management Committee, Special Asset Management Credit
Committee and Anti-Money Laundering Committee, consist of
relevant management staff from various functions.
The Exco members are:
Peter Foo Moo Tan
Wee Ee Cheong
Lee Chin Yong
Cheo Chai Hong
Sanchai Apisaksirikul
Chairman
Vice Chairman I
Vice Chairman II
Member
Member
The AC members are:
Arun Chirachavala*
Chinnawat Bulsuk
Suebtrakul Soonthornthum
Chairman
Member
Member
* Appointment effective from 2 August 2014
Nomination and Compensation Committee
The Nomination and Compensation Committee (“NCC”) consists
of four directors, two of whom are independent directors (including
the NCC Chairman). The NCC is responsible for the nomination of,
and the remuneration for, the Board members and Senior
Management. The NCC’s duties include:
a) determining the policy and criteria for selection and reviewing
the suitability of candidates for appointment to the Board, as
Chief Executive Officer and to Senior Management positions of
executive director level and above, and deciding on any internal
promotions to the rank of executive director and above; and
b) setting the approach to the remuneration, recommending the
remuneration for the Board members and reviewing the
remuneration of the Senior Management team.
The NCC members are:
Chinnawat Bulsuk*
Wee Ee Cheong
Lee Chin Yong
Suebtrakul Soonthornthum
Chairman
Member
Member
Member
* Appointment effective from 2 August 2014
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
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127
Corporate Governance
Risk and Capital Committee
In 2014, the Board held four meetings and the AC held four
meetings. The attendance of each director is as follows:
The Risk and Capital Committee (“RCC”) is established by the
Board and comprises two directors and twelve function heads.
The RCC reviews the Bank’s overall risk appetite, ICAAP and capital.
Other key functions performed by the RCC include:
a) establishing policies on managing credit risk, market risk,
liquidity risk, operational risk and any other types of risks that
may affect the reputation and stability of the Bank and its
subsidiaries;
b) reviewing the adequacy of the policies, risk management
procedures and all important aspects of the rating systems,
and processes which include the use of rating systems and
estimates of Internal Ratings-Based Approach parameters and
stress tests, taking into account the business and capital
implication;
c) discussing risk and capital issues on an integrated basis,
including reviewing the capital plan;
d) reviewing the UOB (Thai) Group’s risk appetite framework and
risk appetite statement;
e) recommending risk treatment actions in response to material
changes, events and breaches of the risk appetite;
f) resolving outstanding disagreement on exiting customer
relationship and denial of account opening to new and existing
customers proposed by the Bank’s Anti-Money Laundering
Committee;
g) overseeing UOB (Thai) Group’s consolidated companies to
ensure that UOB (Thai) Group’s risk management policies and
regulatory requirements are complied with;
h) considering operational risk issues proposed by Operational
Risk Management Committee (ORMC).
Board of Directors
Wee Cho Yaw
Wee Ee Cheong
Chinnawat Bulsuk
Suebtrakul Soonthornthum
Arun Chirachavala
Lee Chin Yong
Cheo Chai Hong
Peter Foo Moo Tan
Sanchai Apisaksirikul
No. of Meetings Attended
2/4
4/4
4/4
4/4
4/4
4/4
4/4
4/4
4/4
Audit Committee
Arun Chirachavala
Chinnawat Bulsuk
Suebtrakul Soonthornthum
No. of Meetings Attended
4/4
4/4
4/4
The RCC reports directly to the Board on a regular basis and
highlights new risks and exceptional risk events to the AC from
time to time.
The RCC members are:
President and CEO
Head of Credit and Risk Management
Head of Finance and Corporate Services
Head of Risk Management
Head of Technology and Operations
Head of Corporate Banking
Head of Commercial Banking
Head of Personal Financial Services
Head of Business Banking
Head of Credit Approval
Head of Global Markets
Head of Compliance
Head of Channels
Head of Retail Credit
128
Chairman
Vice Chairman
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
| UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Branch Network
As at 31 December 2014
Bang Poo Industrial Estate Market
Bangyai City
(Mon - Fri from 8.30am - 3.30pm)
(Mon - Sat from 10.00am - 6.00pm)
Sathon
798-799 Tessaban Preakasa 14 Rd.,
Bangyai City, 89/12-14 Moo 6,
(Mon - Fri from 8.30am - 3.30pm )
Preakasa, Muang, Samut Prakan 10280
Kanchanapisek Rd., Saothonghin,
191 South Sathon Rd., Sathon, Bangkok 10120
Tel
: 0 2324 3504-7
Bangyai, Nonthaburi 11140
Tel
Fax
: 0 2324 3508
Tel
: 0 2595 0481-2, 0 2595 0484-5
Fax
: 0 2595 0486
Head Office
: 0 2343 3000 Ext. 2682, 2684, 2686
0 2343 2688, 0 2343 2689,
Fax
0 2343 2695, 0 2343 2047,
Bangbuathong
0 2343 2687, 0 2343 2612,
(Mon - Fri from 8.30am - 3.30pm)
Big C Omyai
0 2343 2682, 0 2343 2686,
28/33-35 Moo 4, Bangkruay-Sainoi Rd.,
(Daily from 10.30am - 7.30pm)
0 2343 2693, 0 2343 2685,
Sahno-loi, Bangbuathong, Nonthaburi 11110
Big C Super Center Omyai, 17/17 Moo 8,
0 2343 2610, 0 2343 2602,
Tel
: 0 2920 2451-5
Omyai, Sampran, Nakhon Prathom 73160
0 2343 2565, 0 2343 2561
Fax
: 0 2920 2450
Tel
: 0 2431 1534-7
Fax
: 0 2431 1542
: 0 2287 2972
Bangmod
Bangkok Metropolitan, Nonthaburi and
(Mon - Fri from 8.30am - 3.30pm)
Bobae
Pathumthani
1/2 Moo 9, Rama II Rd., Jomthong,
(Daily from 8.30am - 5.30pm)
Bangkok 10150
1082/2 Krungkasem Rd., Klong Mahanak,
Amarin Plaza
Tel
: 0 2867 0203-5, 0 2867 0913
Pom Prap Sattru Phai, Bangkok 10100
(Mon - Fri from 8.30am - 5.00pm)
Fax
: 0 2867 0914
Tel
Amarin Plaza, 1st Fl., 500 Ploenchit Rd.,
0 2282 4374, 0 2282 3694-5,
Pathum Wan, Bangkok 10500
Bangna KM.2
Tel
(Mon - Fri from 8.30am - 3.30pm)
Fax
: 0 2252 6292-3, 0 2251 8579,
: 0 2282 3665, 0 2282 3796,
0 2282 4557
Fax
: 0 2282 1914
0 2256 9045-6, 0 2256 9906,
21/235-236 Moo 12, Bangna-Trad Rd.,
0 2256 9677, 0 2256 9680
Bangna, Bangkok 10260
BTS On Nut
Tel
(Daily from 10.00am - 7.00pm)
: 0 2252 7871
: 0 2396 1931, 0 2393 9825,
0 2399 0178-81
Anusavaree Chaisamoraphoom
Fax
: 0 2393 6147
Market Plus Building, 2nd Fl., 2149
Soi Sukhumvit 83, Phra Khanong,
Bangkok 10260
(Mon - Fri from 8.30am - 3.30pm)
911/1-3 Phaholyothin Rd., Phaya Thai,
Bangplee
Tel
: 0 2741 4206-7, 0 2741 4210
Bangkok 10400
(Daily from 10.00am - 7.00pm)
Fax
: 0 2742 5816
Tel
BIG C Center Bangplee, 89 Moo 9
: 0 2271 0089, 0 2271 3447,
0 2271 2662
Fax
: 0 2271 0088
Taeparak KM. 13 Rd., Bangplee,
Buntudthong
Samut Prakarn 10540
(Daily from 8.30am - 3.30pm)
Tel
56/20, 56/59-62 Rama I Rd., Pathum Wan,
Asok Montri
(Mon - Fri from 8.30am - 3.30pm)
: 0 2752 4505, 0 2752 4507-9,
0 2752 4506
Fax
: 0 2752 4504
Bangkok 10330
Tel
: 0 2214 1733, 0 2214 2067,
Fax
: 0 2215 4836
0 2214 2252, 0 2214 1292
Ratchapark Building, 1st Fl.,
163 Sukhumvit 21 Rd., Wattana,
Bangrak
Bangkok 10110
(Mon - Fri from 8.30am - 3.30pm)
Tel
Jems Tower Building,
Central Bangna
0 2258 3265, 0 2258 3268,
1249/19, 1249/50, 1249/59
(Daily from 10.30am - 7.30pm)
0 2258 3881
Charoen Krung Rd., Bangrak,
587 Room 252-254 Bangna-Trad Rd.,
Bangkok 10500
Bangna, Bangkok 10260
Tel
: 0 2237 5050-1, 0 2237 8577-8,
Tel
: 0 2361 7851-3
0 2234 5265, 0 2266 9896-7,
Fax
: 0 2361 7854
Fax
: 0 2258 3259, 0 2258 3261,
: 0 2258 9552
Bang Bon
(Mon - Fri from 8.30am - 3.30pm)
289 Eakchai Rd., Bang Bon, Bangkok 10150
Tel
: 0 2898 0423-5, 0 2415 6984
Fax
: 0 2898 0426
0 2234 5266
Fax
: 0 2266 9667
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
|
129
Branch Network
As at 31 December 2014
Central Grand Rama 9
City Complex
Latphrao
(Daily from 10.30am - 7.30pm)
(Mon - Fri from 8.30am - 5.00pm)
(Mon - Fri from 8.30am - 3.30pm)
Central Plaza Grand Rama 9 Department Store,
City Complex Building, 831 Petchburi Rd.,
1558 Ladphrao Rd., Wang Thong Lang,
5th Fl., Room No. 508-2, 9/8, 9/9 Rama 9 Rd.,
Ratchathewi, Bangkok 10400
Bangkok 10310
Huai Kwang, Bangkok 10310
Tel
Tel
: 0 2255 0746, 0 2255 0749,
Tel
: 0 2160 3851-4
0 2653 8522, 0 2613 5199,
Fax
: 0 2160 3855
0 2252 1211
Fax
: 0 2255 0748
: 0 2514 2709, 0 2514 2964,
0 2539 5800, 0 2530 1120,
0 2933 7416-7
Fax
: 0 2539 2003
Central Pinklao
(Daily from 10.30am - 7.30pm)
Empire Tower
Leng Nuei Yee
Central Pinklao Department Store,
(Mon - Fri from 8.30am - 4.30pm)
(Mon - Fri from 8.30am - 5.00pm)
7/1 Baromratchonnanee Rd., Bangkok-noi,
Empire Tower, B1 Fl., Unit K27,
416-8 Charoen Krung Rd., Sampanthawong,
Bangkok 10700
195 South Sathorn Rd., Yannawa,
Bangkok 10100
Tel
: 0 2884 8030-2
Sathon, Bangkok 10120
Tel
: 0 2623 1644-7
Fax
: 0 2884 8033
Tel
: 0 2287 2870-3
Fax
: 0 2623 1090
Fax
: 0 2287 2874
Central Rama 2
Major Phra Pra Daeng
(Daily from 10.30am - 7.30pm)
Fashion Island
(Daily from 10.30am - 7.30pm)
Central Plaza Rama 2 Department Store,
(Daily from 10.30am - 7.30pm)
Major Phra Pra Daeng Building, 360/14 Moo 7,
1st Fl., Room 159, 160 Rama 2 Rd.,
Fashion Island Department Store,
Suksawat Rd., Ratburana, Bangkok 10140
Bang Khun Thien, Bangkok 10150
587, 589 Ramintra Rd., Kunayao,
Tel
: 0 2818 1970-2
Tel
: 0 2415 1648-50, 0 2415 1867
Bangkok 10230
Fax
: 0 2818 1973
Fax
: 0 2415 1868
Tel
: 0 2947 5307-9, 0 2947 5311,
Fax
: 0-2947-5310
0 2947 5311
Central Plaza Rama 3
(Daily from 11.00am - 8.00pm)
Manorom
(Mon - Fri from 8.30am - 3.30pm)
Manorom Building, 3354/1 Rama 4 Rd.,
Central Plaza Rama 3 Department Store,
Gateway Ekamai
Klongton, Klong Toey, Bangkok 10110
4th Fl., Unit No. 434, 79 Sathupradit Rd.,
(Daily from 10.30am - 7.30pm)
Tel
: 0 2249 7480-2
Chong Nonsri, Yanawa, Bangkok 10120
Gateway Ekamai Department Store,
Fax
: 0 2249 7479
Tel
: 0 2164 0085-6, 0 2673 7027-8
982/22 Sukhumvit Rd., Phra Khanong,
Fax
: 0 2164 0087
Klongtoey, Bangkok 10110
Megabangna
Tel
: 0 2108 2856-9
(Daily from 10.30am - 7.30pm)
Fax
: 0 2108 2849
39 Moo 6, Bangna-Trad Rd., KM. 8,
Central Rattanathibet
(Daily from 10.00am - 8.00pm)
Bangkaew, Bangplee, Samut Prakarn 10540
Central Plaza Rattanatibeth, 2nd Fl.,
Huamark
Tel
: 0 2186 8702-5
Zone E-Centre Department Store,
(Mon - Fri from 8.30am - 3.30pm)
Fax
: 0 2186 8706
562, 566 Moo 8, Rattanathibet Rd.,
5, 7, 9 Soi Ramkhamheang 19/1,
Muang, Nonthaburi 11000
Ramkhamhaeng Rd., Bangkapi, Bangkok 10240
Minburi
Tel
Tel
(Mon - Fri from 8.30am - 3.30pm)
: 0 2527 8619-20, 0 2527 8631,
0 2527 8633
Fax
: 0 2527 8636
: 0 2318 8561-4, 0 2718 4624,
0 2319 3062
Fax
: 0 2318 0139
Navamin Plaza, G Fl., 599/1 Moo 13
Sihaburanukit Rd., Minburi, Bangkok 10510
Tel
: 0 2518 0815-7
Fax
: 0 2518 0799
Chaengwatana
Klong Toey
(Mon - Fri from 8.30am - 3.30pm)
(Mon - Fri from 8.30am - 3.30pm)
Na Nakorn Building, 99/349 Moo 2,
Rama IV Department Store,
Muang Thong Thani
Chaengwatana Rd., Donmuang, Bangkok 10210
1472-1474 Rama IV Rd., Klong Toey,
(Mon - Fri from 8.30am - 3.30pm)
Tel
Bangkok 10110
339 Muangthongthani, Bondstreet Rd.,
Tel
: 0 2249 0886-7, 0 2249 0888-90
Parkkred, Nonthaburi 11120
Fax
: 0 2249 4075
Tel
: 0 2503 4940-3
Fax
: 0 2503 4914
: 0 2576 1057-60, 0 2576 1544-5,
0 2576 1531-2
Fax
130
: 0 2576 1533
| UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Branch Network
As at 31 December 2014
Ngam Wong Wan
Phaholyothin Soi 19
Ratchada-Huay Khwang
(Mon - Fri from 8.30am - 3.30pm)
(Mon - Fri from 8.30am - 3.30pm)
(Mon - Fri from 8.30am - 3.30pm)
207/15 Moo 6, Ngam Wong Wan Rd.,
Rasa Tower Building, 555 Phaholyothin Rd.,
167/8 Ratchadaphisek Rd., Din Daeng,
Luksi, Bangkok 10210
Chatuchak, Bangkok 10900
Bangkok 10320
Tel
: 0 2591 7902, 0 2591 0770
Tel
: 0 2937 0300-4, 0 2513 3165
Tel
: 0 2276 9408-12, 0 2276 9414
Fax
: 0 2591 0771
Fax
: 0 2937 0305
Fax
: 0 2276 9413
Nong Khaem
Phahurad
Ratchada-Sathupradit
(Mon - Fri from 8.30am - 3.30pm)
(Mon - Fri from 8.30am - 5.00pm,
(Mon - Fri from 8.30am - 3.30pm)
77/207 Moo 2, Phetkasem Rd.,
Sat from 10.00am - 5.00pm)
127/1 Nonsee Rd., Yannawa, Bangkok 10120
Nong Khaem, Bangkok 10160
The Old Siam Plaza, 2/30-33, 4/11-14
Tel
: 0 2681 1111-5, 0 2681 1738,
Tel
: 0 2420 7941-4
Burapa Rd., Phra Nakhon, Bangkok 10200
Fax
: 0 2420 7940
Tel
: 0 2222 0176-9, 0 2222 4113-4,
Fax
: 0 2681 1110
Fax
: 0 2223 0708
0 2295 3706-7
0 2223 1854-5, 0 2623 8477
Nonthaburi
(Mon - Fri from 8.30am - 3.30pm)
Ratchada-Thaphra
(Mon - Fri from 8.30am - 3.30pm)
32/16-19 Pracharat Rd., Muang,
Phra Pinklao
Decha Building, 299 Ratchadaphisek 6 Rd.,
Nonthaburi 11000
(Mon - Fri from 8.30am - 3.30pm)
Thonburi, Bangkok 10600
Tel
30 Charansnidvongs Rd., Bangplad,
Tel
: 0 2476 9945-9
Bangkok 10700
Fax
: 0 2476 9944
: 0 2525 1770-2, 0 2968 4592-4,
0 2968 4594
Fax
: 0 2526 2993
Tel
: 0 2434 7110-3, 0 2434 7115,
Fax
: 0 2434 7114
0 2424 2283
On Nut
(Mon - Fri from 8.30am - 3.30pm)
Samrong
(Mon - Fri from 8.30am - 3.30pm)
999/99 Moo 1, Sukhumvit Rd., Muang,
1468, 1470 On Nut Rd., Suan Luang,
Platinum Pratunam
Samut Prakan 10270
Bangkok 10250
(Daily from 10.00am - 7.00pm)
Tel
Tel
: 0 2332 3134-7
The Platinum Fashion Mall, B Fl.,
Fax
: 0 2331 8519
222/125, 222/177, 222/178 Petchaburi Rd.,
Ratchathewi, Bangkok 10400
Paradise Park
Tel
: 0 2121 8215-8
(Daily from 10.30am - 7.30pm)
Fax
: 0 2121 8219
Paradise Park, 2nd Fl., 2C004 Srinakarin Rd.,
: 0 2384 7656, 0 2384 4510,
0 2394 0422, 0 2394 0428,
0 2394 0488, 0 2756 8597-8
Fax
: 0 2384 4352
Samyeak
(Mon - Fri from 8.30am - 3.30pm)
Nongbon, Prawet, Bangkok 10250
Rajchaprarop
601 Charoen Krung Rd.,
Tel
: 0 2746 0816-8
(Mon - Fri from 8.30am - 5.00pm)
Samphanthawong, Bangkok 10100
Fax
: 0 2746 0819
120/126 Rajchaprarop Rd., Ratchathewi,
Tel
: 0 2222 5111-6
Bangkok 10400
Fax
: 0 2222 1354
Pattanakarn
Tel
: 0 2656 3071-2, 0 2656 3068
(Mon - Fri from 8.30am - 3.30pm)
Fax
: 0 2251 0404
309/1-4 Patanakarn Rd., Prawet, Bangkok 10250
Saphanmai
(Mon - Fri from 8.30am - 3.30pm)
Tel
: 0 2322 0439, 0 2322 0441-3
Rajchawong
108/502-503 Moo 7, Phaholyothin Rd.,
Fax
: 0 2322 0438
(Mon - Fri from 8.30am - 3.30pm)
Bangkhen, Bangkok 10220
219/2 Rajawongse Rd., Sampandhawongse,
Tel
: 0 2522 6646-8
Phaholyothin KM.26
Bangkok 10100
Fax
: 0 2522 6649
(Mon - Fri from 8.30am - 3.30pm)
Tel
: 0 2221 7515, 0 2622 7388-90
1/737 Moo 17, Soi Amporn, Phaholyothin KM. 26,
Fax
: 0 2622 7392
Lam Luk Ka, Pathum Thani 12150
Sathon 2
(Mon - Fri from 8.30am - 3.30pm)
Tel
: 0 2532 3645-50, 0 2532 3644
Rangsit
Bangkok City Tower Building,
Fax
: 0 2532 3641
(Daily from 10.30am - 7.30pm)
179/3 South Sathon Rd., Sathon, Bangkok 10120
Future Park Rangsit Building, 94 Moo 2,
Tel
: 0 2679 5700-2, 0 2679 5704
Thanyaburi, Pathum Thani 12110
Fax
: 0 2679 5703
Tel
: 0 2958 0562-7
Fax
: 0 2958 0568
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
|
131
Branch Network
As at 31 December 2014
Seacon Bangkae
Siam Square
Sukhumvit 4
(Daily from 10.30am - 7.30pm)
(Mon - Fri from 8.30am - 5.00pm,
(Mon - Fri from 8.30am - 3.30pm)
Seacon Bangkae Department Store,
Sat from 10.00am - 5.00pm)
142 Sukhumvit Rd., Klong Toey, Bangkok 10110
607 Phetchakasem Rd., Bangwa,
410-410/1 Siam Square Soi 6, Rama I Rd.,
Tel
Phasi Charoen, Bangkok 10160
Pathum Wan, Bangkok 10500
Tel
: 0 2454 8792-5
Tel
Fax
: 0 2454 8696
Fax
0 2653 2218, 0 2653 2180,
: 0 2251 3343, 0 2251 2145,
0 2251 2278-9
: 0 2653 2178-9, 0 2253 5137,
0 2252 2522
Fax
: 0 2653 2181
: 0 2251 2280
Seacon Square
Sukhumvit 25
(Daily from 10.30am - 7.30pm)
Silom 2
(Mon - Fri from 8.30am - 3.30pm)
Seacon Square Department Store,
(Mon - Fri from 8.30am - 5.00pm)
Ban Chang Glass House Building,
3rd Fl., 55 Unit 3057F, 55 Srinakarin Road,
14 Silom Rd., Bangrak, Bangkok 10500
1 Soi Sukhumvit 25, Klong Toey, Bangkok 10110
Nongbon, Pravej, Bangkok 10250
Tel
: 0 2632 8801-3, 0 2632 8805
Tel
Tel
: 0 2721 9103-4, 0 2138 5744-5
Fax
: 0 2632 8804
Fax
: 0 2138 5746
: 0 2258 0270-1, 0 2260 6117-9,
0 2258 9330-2, 0 2661 7741,
0 2661 7761
Silom Complex
Fax
: 0 2258 4582
Senanikom
(Daily from 10.30am - 7.30pm)
(Mon - Fri from 8.30am - 3.30pm)
Silom Complex Building, 4th Fl., 191 Silom Rd.,
Sukhumvit 26
126/19 Phaholyothin 32 Rd. (Soi Senanikom 1),
Bangrak, Bangkok 10500
(Mon - Fri from 8.30am - 3.30pm)
Chatuchak, Bangkok 10900
Tel
: 0 2231 3139-40, 0 2231 3100-1
690 Sukhumvit Rd., Klong Toey, Bangkok 10110
Tel
Fax
: 0 2231 3137
Tel
: 0 2620 4469-71, 73-80
Fax
: 0 2260 5312
: 0 2561 3100-1, 0 2579 6248,
0 2561 1054, 0 2941 7775
Fax
: 0 2579 9088
Soi Yoo Dee
(Mon - Fri from 8.30am - 3.30pm)
Sukhumvit 83
Si Phraya
597/113-114 Trok Watchannai, Chan Rd.,
(Mon - Fri from 8.30am - 3.30pm)
(Mon - Fri from 8.30am - 3.30pm)
Bang Khoe Laem, Bangkok 10120
Market Plus Building, 2nd Fl.,
295 Si Phraya Rd., Bangrak, Bangkok 10500
Tel
: 0 2292 1627-8, 0 2291 4904-5,
2149 Soi Sukhumvit 83, Pra Khanong,
Fax
: 0 2291 4906
Tel
0 2631 5440-1
Fax
0 2291 4907
: 0 2235 2884-7, 0 2236 6805,
: 0 2235 2882
Bangkok 10260
Tel
: 0 2742 5812-5, 0 2742 5818
Fax
: 0 2742 5816
Songwad
Si Yeak Sriwara
(Mon - Fri from 8.30am - 3.30pm)
Sukhumvit 101 (Piyarom Park)
(Mon - Fri from 8.30am - 3.30pm)
1252-4 Songwad Rd., Samphanthawong,
(Daily from 10.00am - 7.00pm)
573/139 Soi Ramkhamhaeng 39, Prachauthit Rd.,
Bangkok 10100
3079/25 Soi Piyabuttra, Sukhumvit Rd.,
Wangthonglang, Bangkok 10310
Tel
Phra Khanong, Bangkok 10260
Tel
: 0 2934 7941-4
Fax
: 0 2934 7945
: 0-2225-6254-5, 0-2225-3596-7,
0-2226-3606-7
Fax
: 0 2225 6256
Tel
: 0 2730 5100-3, 0 2730 5104-5
Fax
: 0 2730 5106
Siam Paragon
Srinakarin
Suksawat
(Daily from 10.00am - 7.00pm)
(Mon - Fri from 8.30am - 3.30pm)
(Mon - Fri from 8.30am - 3.30pm)
Siam Paragon Shopping Center, Main Level,
395/5 Srinakarin Rd., Muang,
393,395,397 Suksawat Rd., Rat Burana,
Unit M14, 991 Rama 1 Rd., Pathum Wan,
Samut Prakarn 10270
Bangkok 10140
Pathum Wan, Bangkok 10330
Tel
: 0 2385 7312-5
Tel
: 0 2477 2409-11
Tel
: 0 2129 4570-2
Fax
: 0 2385 7316
Fax
: 0 2468 6028
Fax
: 0 2129 4573
132
St. Louis 3
Surawong
(Mon - Fri from 8.30am - 3.30pm)
(Mon - Fri from 8.30am - 3.30pm)
9/10 Trok Chan Saphan 3, Chan Rd.,
134 Surawongse Rd., Bangrak, Bangkok 10500
Sathon, Bangkok 10120
Tel
: 0 2233 9730-3
Tel
: 0 2212 7024, 0 2211 1407
Fax
: 0 2235 5208
Fax
: 0 2211 0815
| UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Branch Network
As at 31 December 2014
Talard Thai
Thanon Phaholyothin 8
Thanon Vorachak
(Daily from 9.30am - 6.30pm)
(Mon - Fri from 8.30am - 3.30pm)
(Mon - Fri from 8.30am - 3.30pm)
32/1044 Moo 9, Klongnueng, Klongluang,
Shinawatra Tower 1 Building, G Fl.,
94-96 Vorachak Rd., Pom Prap Sattru Phai,
Pathum Thani 12120
414 Phaholyothin Rd., Phayathai,
Bangkok 10100
Tel
: 0 2908 4784-7
Bangkok 10400
Tel
: 0 2225 9086, 0 2225 9088,
Fax
: 0 2908 4847
Tel
: 0 2616 9760-2, 0 2357 1690
Fax
: 0 2357 1490
Fax
: 0 2225 9087
0 2225 9085, 0 2621 1247
Talard Si Mummuang
(Mon - Fri from 8.30am - 3.30pm)
Thanon Phayathai
Thanon Witthayu
355/33-35 Moo 8, Phaholyothin Rd.,
(Mon - Fri from 8.30am - 3.30pm)
(Mon - Fri from 8.30am - 5.00pm)
Lam Luk Ka, Pathum Thani 12130
Golden Town Building, 1st Fl., 71 Phaya Thai Rd.,
CRC Tower Building, G Fl.,
Tel
: 0 2536 7850, 0 2536 7854-6
Ratchathewi, Bangkok 10400
121, 87/2 Wireless Rd., Pathum Wan,
Fax
: 0 2536 7853
Tel
: 0 2653 4530-2
Bangkok 10330
Fax
: 0 2653 4658
Tel
: 0 2255 5392-4
Fax
: 0 2255 5395
Thaiwa Tower
(Mon - Fri from 8.30am - 3.30pm)
Thanon Phraram 6
Thai Wah Tower 1 Building,
(Mon - Fri from 8.30am - 3.30pm)
21/63-66 South Sathon Rd., Sathon,
Tipco Tower Building, 118/1 Rama VI Rd.,
Thanon Yaowarat
(Mon - Fri from 8.30am - 5.00pm)
Bangkok 10120
Phaya Thai, Bangkok 10400
422, 424 Yaowaraj Rd., Samphanthawong,
Tel
: 0 2285 0092-4
Tel
: 0 2357 3460-3, 0 2357 3332
Bangkok 10100
Fax
: 0 2285 0095
Fax
: 0 2357 3464
Tel
: 0 2226 2930-1, 0 2226 5855
Fax
: 0 2226 2933
Thanon Asoke-Dindaeng
Thanon Phraram 9
(Mon - Fri from 8.30am - 3.30pm)
(Mon - Fri from 8.30am - 3.30pm)
The Circle Ratchapruk
729 Asoke-Dindaeng Rd., Din Daeng,
Worrasombat Building, Ground Fl.,
(Daily from 10.30am - 7.30pm)
Bangkok 10320
100/1 Rama IX Rd., Huai Khwang,
39 Room R6 Ratchapruk Rd., Bangramap,
Tel
: 0 2248 6935-7
Bangkok 10310
Taling Chun, Bangkok 10170
Fax
: 0 2248 6933
Tel
: 0 2645 0683-5
Tel
: 0 2863 8624-6
: 0 2645 0440
Fax
: 0 2863 8627
Fax
Thanon Khaolarm
(Mon - Fri from 8.30am - 3.30pm)
Thanon Pracha-U-Thit
The Mall Bangkae
2214, 2216 Khaolarm Rd., Samphanthawong,
(Mon - Fri from 8.30am - 3.30pm)
(Daily from 10.30am - 7.30pm)
Bangkok 10100
147/1-4 Moo 8, Pracha-U-Thit Rd.,
The Mall Bangkae, 3rd Fl., 275 Moo 1,
Tel
: 0 2238 2540-1, 0 2234 3399
Rat Burana, Bangkok 10140
Petchakasem Rd., North Bangkae,
Fax
: 0 2238 2543
Tel
: 0 2873 1457-60, 0 2873 1439
Bangkae, Bangkok 10160
Fax
: 0 2873 1440
Tel
: 0 2482 9582-5
Fax
: 0 2482 9586
Thanon Kingkaew
(Mon - Fri from 8.30am - 3.30pm)
Thanon Sri Wara
9-4 Moo 7, Kingkaew Rd., Rachatewa,
(Mon - Fri from 8.30am - 3.30pm)
The Mall Bangkapi
Bangplee, Samut Prakan 10540
314 Soi Ladphrao 94 (Panjamit), Sri Wara Rd.,
(Daily from 10.30am - 7.30pm)
Tel
Wang Thong Lang, Bangkok 10310
The Mall Bangkapi, 3rd Fl., 3522 Ladphrao Rd.,
Tel
: 0 2559 3600-5, 0 2935 6025-6
Kong-jun, Bangkapi, Bangkok 10240
Fax
: 0 2559 3606
Tel
: 0 2363 3570-3
Fax
: 0 2363 3574
Fax
: 0 2175 1967-70
: 0 2175 1971
Thanon Krungthonburi
(Mon - Fri from 8.30am - 3.30pm)
Thanon Sukhaphiban 3
Sinsathorn Tower, 77/2 Krungthonburi Rd.,
(Mon - Fri from 8.30am - 3.30pm)
Thonglor
Klongsarn, Bangkok 10600
902 Ramkamhaeng Rd., Bangkapi,
(Mon - Fri from 8.30am - 3.30pm)
Tel
: 0 2440 0345-9, 0 2440 0348
Bangkok 10240
283/15-17, 283/65, Soi Thonglor 13,
Fax
: 0 2440 0350
Tel
Sukhumvit 55 Rd., Wattana, Bangkok 10250
Fax
: 0 2375 8725, 0 2375 8794,
0 2375 8799, 0 2377 9183,
Tel
: 0 2712 7150-5
0 2377 5285, 0 2735 4018
Fax
: 0 2712 7156
: 0 2375 8795
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
|
133
Branch Network
As at 31 December 2014
Union Mall Ladprao
Phra Nakhon Si Ayutthaya
Ban Bung
(Daily from 11.00am - 8.00pm)
(Mon - Fri from 8.30am - 3.30pm)
(Mon - Fri from 8.30am - 3.30pm)
Union Mall Center, 2nd Fl., 54 Ladprao Rd.,
255 Moo 5, Rojana Rd.,
403 Chon Buri-Baan Bung Rd.,
Jompol, Chatuchak, Bangkok 10900
Phra Nakhon Si Ayutthaya,
Baan Bung, Chon Buri 20170
Tel
: 0 2939 2613-5
Phra Nakhon Si Ayutthaya 13000
Tel
: 0 3844 3628, 0 3844 3072,
Fax
: 0 2937 1730
Tel
Fax
: 0 3844 3039
0 3522 9049
United Center
Fax
0 3875 0979-80, 0 3875 1118-9
: 0 3524 6116, 0 3524 6030,
: 0 3524 1546
Bang Lamung
(Mon - Fri from 10.30am - 6.30pm)
United Center Building, 2nd Fl., Unit 209A,
Ratchaburi
(Mon - Fri from 8.30am - 3.30pm)
323 Silom Rd, Silom, Bangrak, Bangkok 10500
(Mon - Fri from 8.30am - 3.30pm)
90/27 Moo 5, Pattaya-Naglue Rd.,
Tel
: 0 2237 4890-3
111 Kathatorn Rd., Na Muang,
Bang Lamung, Chon Buri 20150
Fax
: 0 2237 4894
Muang Ratchaburi, Ratchaburi 70000
Tel
Wiphawadi-Rangsit 9
Tel
: 0 3231 0321-3
Fax
: 0 3231 0324
0 3842 7748-9, 0 3842 0273,
0 3872 6817
Fax
(Mon - Fri from 8.30am - 3.30pm)
: 0 3842 8418, 0 3842 9333,
: 0 3842 3332
T.S.T. Tower Building, 21 Wiphawadi-Rangsit Rd.,
Samut Sakhon
Chatuchak, Bangkok 10900
(Mon - Fri from 8.30am - 3.30pm)
Central Chonburi
Tel
: 0 2273 8120-1, 0 2273 8939-40
927/403 Sethakit 1 Rd., Muang,
(Daily from 11.00am - 8.00pm)
Fax
: 0 2273 8122
Samut Sakhon 74000
Central Plaza Chonburi, 2nd Fl.,
Tel
55/88-9, 55/91 Sukhumvit Rd.,
Yaowarat Mahajak
(Mon - Fri from 8.30am - 5.00pm)
: 0 3481 0514-5, 0 3442 7510,
0 3442 7582
Fax
: 0 3481 0513
236, 238, 240 Yaowarat Rd., Chakkrawat,
Samet, Muang, Chon Buri 20000
Tel
: 0 3805 3920-3
Fax
: 0 3805 3924
Samphanthawong, Bangkok 10110
Samut Songkhram
Tel
: 0 2225 5241-44
(Mon - Fri from 8.30am - 3.30pm)
Chon Buri
Fax
: 0 2225 5245
125/104 Tang Kao Muang Rd.,
(Mon - Fri from 8.30am - 3.30pm)
Muang, Samut Songkhram 75000
804 Kor Chetchamnong Rd.,
Tel
Muang, Chon Buri 20000
Central Area
Chachoengsao
(Mon - Fri from 8.30am - 3.30pm)
Fax
: 0 3471 8111, 0 3471 8222,
0 3471 8626, 0 3471 8628,
Tel
: 0 3827 3601-6
0 3471 8629, 0 3474 0028
Fax
: 0 3827 3607
: 0 3471 8627
94/3 Chumphon Rd., Muang,
Chon Buri 2
Chachoengsao 24000
Saraburi
(Mon - Fri from 8.30am - 3.30pm)
Tel
(Mon - Fri from 8.30am - 3.30pm)
116/110 Moo 3, Sukhumvit Rd.,
427 Phaholyothin Rd., Muang,
Muang, Chon Buri 20000
Saraburi 18000
Tel
: 0 3879 7457-9, 0 3879 7462
Tel
: 0 3621 2137-8, 0 3631 2055-6,
Fax
: 0 3879 7461
Fax
: 0 3622 1636
: 0 3851 1621-2, 0 3881 8149,
0 3851 4627-8, 0 3853 5083
Fax
: 0 3851 1623
Kanchanaburi
(Mon - Fri from 8.30am - 5.00pm)
0 3622 2344, 0 3622 1630
160/39-40 Sangchutoe Rd., Ban Nuea,
Muang, Kanchanaburi 71000
Tel
: 0 3452 1621-3
Fax
: 0 3452 1624
Pattaya
(Mon - Fri from 10.00am - 6.00pm)
Eastern Area
325/115-116 Moo 10, Pattaya Sai 2 Rd.,
Bang Lamung, Chon Buri 20260
Chanthaburi
Tel
: 0 3842 9464, 0 3871 0414,
Fax
: 0 3842 9400
(Mon - Fri from 8.30am - 3.30pm)
Nakhon Pathom
82/9 Thachalab Rd., Muang,
(Mon - Fri from 8.30am - 5.00pm)
Chanthaburi 22000
63-65 Rajvithi Rd., Muang,
Tel
: 0 3931 2822, 0 3934 6616,
Fax
: 0 3932 1201
0 3934 6434-5
Nakhon Pathom 73000
Tel
: 0 3425 1184-6
Fax
: 0 3425 1186
134
| UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
0 3841 0027
Branch Network
As at 31 December 2014
Robinson Sriracha
Northeastern Area
(Daily from 11.00am - 8.00pm)
Surin
(Mon - Fri from 8.30am - 3.30pm)
Robinson Sriracha Department Store,
Khon Kaen
79, 81, 83 Chitbumrung Rd., Muang, Surin 32000
90/1 Sukhumvit Rd., Si Racha, Chon Buri 20110
(Mon - Fri from 8.30am - 3.30pm)
Tel
: 0 4453 8384, 0 4451 1848,
Tel
: 0 3832 8458-60
34, 34/1-2 Namuang Rd., Muang,
Fax
: 0 3832 8461
Khon Kaen 40000
Fax
: 0 4451 1081
Tel
: 0 4323 7620-1, 0 4333 4577,
Fax
: 0 4323 7435
Sri Racha
(Mon - Fri from 8.30am - 3.30pm)
0 4323 7609
135/19 Sukhumvit Rd., Si Racha, Chon Buri 20110
0 4451 8997, 0 4451 8998
Ubon Ratchathani
(Mon - Fri from 8.30am - 3.30pm)
177 Ubparat Rd., Muang,
Tel
: 0 3832 4500-2, 0 3832 4504
Khonkaen-Thanon Mittraparb
Ubon Ratchathani 34000
Fax
: 0 3832 4503
(Mon - Fri from 8.30am - 3.30pm)
Tel
81/1 Mitraparb Rd., Muang, Khon Kaen 40000
Ban Chang
Tel
(Mon - Fri from 8.30am - 5.00pm)
51/12 Moo 5, Sukhumvit Rd.,
Fax
0 4524 4717, 0 4526 2904,
: 0 4324 1686, 0 4324 1268,
0 4324 2547
: 0 4524 3830-1, 0 4524 4270-1,
0 4531 1825, 0 4524 4718
Fax
: 0 4524 3832
: 0 4323 8435
Ban Chang, Rayong 21130
Ban Huay Udonthani
Tel
: 0 3860 3120-3, 0 3860 3124-25
Nakhon Ratchasrima
(Mon - Fri from 8.30am - 3.30pm)
Fax
: 0 3860 3119
(Mon - Fri from 8.30am - 3.30pm)
214/27-29 Udon Dutsadi Rd., Mak Khaeng,
2-4 Choompol Rd., Muang,
Muang, Udonthani 41000
Eastern Seaboard
Nakhon Ratchasima 30000
Tel
: 0 4224 3639-41
(Mon - Fri from 8.30am - 3.30pm)
Tel
: 0 4426 8873-7
Fax
: 0 4224 3643
Thanon Hemaraj Avenue, 24/1 Moo 4,
Fax
: 0 4425 5476
Pluak Daeng, Rayong 21140
Tel
Fax
CentralPlaza Udonthani
Nakhon Ratchasrima 2
(Daily from 11.00am - 8.00pm)
0 3895 5287, 0 3895 5290
(Mon - Fri from 8.30am - 3.30pm)
CentralPlaza Udonthani Department Store,
(0 3889 1489 ATM)
545 Friendship Highway, Muang,
277/3 Prajaksillapakom Rd.,
Nakhon Ratchasima 30000
Muang, Udon Thani 41000
Tel
: 0 4426 3487-91
Tel
: 0 4292 1458-61
Fax
: 0 4426 3493
Fax
: 0 4292 1462
: 0 3895 5284-6, 0 3895 5288,
: 0 3895 5289
Laemthong Rayong
(Daily from 10.00am - 8.00pm)
Laemthong Rayong Shopping Plaza, 1st Fl.,
Roiet
Udon Thani
554/4 Sukhumvit Rd., Muang, Rayong 21150
(Mon - Fri from 8.30am - 3.30pm)
(Mon - Fri from 8.30am - 3.30pm)
Tel
: 0 3802 3400-3
427-429 Phadungpanich Rd.,
359 Phosri Rd., Muang, Udon Thani 41000
Fax
: 0 3802 3404
Muang, Roiet 45000
Tel
Map Ta Phut
: 0 4351 5850-2
0 4234 3425, 0 4224 9590,
Fax
: 0 4351 5854
0 4234 3023, 0 4221 3036,
(Mon - Fri from 8.30am - 5.00pm)
0 4224 4733, 0 4224 4062
267/11-13 Sukhumvit Rd., Map Ta Phut,
Sakhon Nakhon
Muang, Rayong 21150
(Mon - Fri from 8.30am - 3.30pm)
Tel
1748/4 Sukkasem Rd., Muang,
: 0 3860 7945, 0 3860 7947,
0 3860 7949, 0 3860 7957
Fax
: 0 3860 8718
: 0 4222 1333, 0 4222 3613,
Tel
Fax
: 0 4224 4062
Sakon Nakhon 47000
Tel
: 0 4271 6350, 0 4271 6303,
0 4271 6895, 0 4271 6765,
Rayong
(Mon - Fri from 8.30am - 3.30pm)
0 4271 6230
Fax
: 0 4271 6728
144/39-41 Sukhumvit Rd., Muang, Rayong 21000
Tel
: 0 3861 4730-3, 0 3861 4255-6
Fax
: 0 3861 4734
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
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135
Branch Network
As at 31 December 2014
Northern Area
Phitsanulok
Thanon Phetchakasem Hat Yai
(Mon - Fri from 8.30am - 3.30pm)
(Mon - Fri from 8.30am - 3.30pm)
Central Airport Chiangmai
112/39-41 Akartodsrod Rd., Muang,
458/2 Phetchakasem Rd., Hat Yai,
(Daily from 11.00am - 8.00pm)
Phitsanulok 65000
Songkhla 90110
2 Manidol Rd., 252-252/1 Wualai Rd.,
Tel
: 0 5522 5153-5
Tel
: 0 7422 0262-3, 0 7422 0274-5
Haiya, Muang, Chiangmai 50100
Fax
: 0 5522 5156
Fax
: 0 7422 0281
Tel
: 0 5390 4143-6
Fax
: 0 5390 4147
Southern Area
CentralPlaza Suratthani
(Daily from 11.00am - 8.00pm)
Chiang Mai-Huaikaew
Nakhon Sri Thammarat
88 Moo 10, Wat Pradu, Muang,
(Mon - Fri from 8.30am - 3.30pm)
(Mon - Fri from 8.30am - 3.30pm)
Surat Thani 84000
137 Huay Kaew Rd., Muang, Chiangmai 50200
1719-1721 Rajdamnern Rd., Muang,
Tel
: 0 7760 2700-3
Tel
: 0 5321 1091-4
Nakhon Sri Thammarat 80000
Fax
: 0 7760 2704
Fax
: 0 5321 1095
Tel
: 0 7535 6112, 0 7535 6860-1
Fax
: 0 7534 2352
Thanon Highway-Chiang Mai
Surat Thani
(Mon - Fri from 8.30am - 3.30pm)
(Mon - Fri from 8.30am - 3.30pm)
Central Festival Phuket
191/1-3 Chonkasem Rd., Muang,
1/99 Chiang Mai-Lampang Rd., Muang,
(Daily from 10.30am - 7.30pm)
Surat Thani 84000
Chiang Mai 50000
Central Festival Phuket, 2nd Fl., 74-75 Moo 5,
Tel
: 0 7728 6292-4
Tel
: 0 5330 4701-4, 0 5330 4706
Wishit, Phuket, Phuket 83000
Fax
: 0 7728 6298
Fax
: 0 5330 4705
Tel
: 0 7621 0492, 0 7621 0526,
Fax
: 0 7621 0596
0 7621 0534, 0 7621 0575
Thanon Sridonchai Chiangmai
(Mon - Fri from 8.30am - 5.00pm)
Trang
(Mon - Fri from 8.30am - 3.30pm)
1/5-6 Rama VI Rd., Thap Thiang,
54, 54/1 Sridonchai Rd., Haiya, Muang,
Hat Pa Tong
Muang, Trang 92000
Chiang Mai 50100
(Mon - Fri from 9.30am - 4.30pm)
Tel
: 0 7521 7782-4, 0 7521 7781
Tel
: 0 5327 0029-30, 0 5328 2903,
159, 161, 163 Rat-U-Thit 200 Years Rd.,
Fax
: 0 7521 7785
Fax
: 0 5328 2015
0 5382 1080-1
Krathu, Phuket 83150
Tel
: 0 7634 0489, 0 7634 0142-3
Yala
Fax
: 0 7634 1169
(Mon - Fri from 8.30am - 3.30pm)
Chiang Rai
8-12 Pipitpakdi Rd., Muang, Yala 95000
(Mon - Fri from 8.30am - 3.30pm)
Ha Yeak Chalong Phuket
643/5 Moo 3, Uttrakit Rd., Muang,
(Mon - Fri from 8.30am - 3.30pm)
Chiang Rai 57000
9/108 Moo 9, Chaofa (East) Rd., Chalong,
Tel
Muang, Phuket 83130
Fax
: 0 5371 6786, 0 5371 1414,
0 5371 6557
Tel
: 0 7638 3801-4
: 0 5371 5429
Fax
: 0 7638 3805
Lampang
Phuket
(Mon - Fri from 8.30am - 3.30pm)
(Mon - Fri from 8.30am - 3.30pm)
255 Boonwat Rd., Muang, Lampang 52000
206 Phuket Rd., Muang, Phuket 83000
Tel
Tel
: 0 7621 1566, 0 7621 1577,
Fax
: 0 7621 4903
: 0 5421 8383, 0 5422 7383,
0 7621 4901-2, 0 7621 0970-1
0 5421 8454, 0 5421 8373
Fax
: 0 5422 7637
Nakhon Sawan
Hat Yai
(Mon - Fri from 8.30am - 3.30pm)
(Mon - Fri from 8.30am - 3.30pm)
532-534 Kosi Rd., Muang, Nakhon Sawan 60000
164 Nipat-utit 1 Rd., Hat Yai,
Tel
Songkhla 90110
: 0 5621 4109, 0 5621 4690,
0 5621 4709, 0 5631 4234-5,
Tel
: 0 7424 3032, 0 7424 5033,
Fax
: 0 7423 5606
0 5631 4299, 0 5621 3166
Fax
136
: 0 5621 3224
0 7423 5605, 0 7424 3810
| UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
Tel
: 0 7321 2218, 0 7321 2414,
Fax
: 0 7321 3764
0 7324 0872, 0 7324 0873
Company Information
Name
Public company registration number
Nature of business
Registration address
Tel
Fax
S.W.I.F.T
Website
:
:
:
:
:
:
:
:
Auditor
Ms. Somjai
Ms. Ratana
Mrs. Nonglak
: Certified Public Accountant (Thailand) No. 4499 and/or
: Certified Public Accountant (Thailand) No. 3734 and/or
: Certified Public Accountant (Thailand) No. 4172
Khunapasut
Jala
Pumnoi
United Overseas Bank (Thai) Public Company Limited
0107535000176
Commercial Bank
191 South Sathon Road, Sathon, Bangkok 10120
0 2343 3000
0 2287 2973-4
UOVBTHBK
www.uob.co.th
EY Office Limited
33rd Floor, Lake Rajada Office Complex
193/136-137 Rajadapisek Road
Klongtoey, Bangkok 10110
G.P.O.Box 1047, Bangkok 10501, Thailand
Tel
: 0 2264 0777
Fax
: 0 2264 0789
Website
: www.ey.com
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
|
137
Company Information
Credit Ratings
Moody's Investors Service
Rating
Long - Term Bank Deposits
Short - Term Bank Deposits
Long - Term Outlook
Short - Term Outlook
Financial Strength
Financial Strength Outlook
Baa1
Prime-2
Stable
Stable
D
Stable
Fitch Ratings
Rating
Long - Term Foreign Currency
Short - Term Foreign Currency
Long - Term Outlook
Viability
Support
National Rating - Long-term
National Rating - Short-term
National Rating Outlook
Standard & Poor’s
Counterparty Credit - Long-term
Counterparty Credit - Short-term
Outlook
ASEAN regional scale ratings - Long-term
ASEAN regional scale ratings - Short-term
138
| UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED ANNUAL REPORT 2014
as at 23 November 2014
as at 2 March 2015
AF2
Stable
bb+
1
AAA(tha)
F1+(tha)
Stable
Rating
BBB+
A2
Stable
axA+
axA-1
as at 14 January 2015
UNITED OVERSEAS BANK (THAI)
PUBLIC COMPANY LIMITED
Annual Report 2014
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED Annual Report 2014
United Overseas Bank (Thai) Public Company Limited
Head Office
191 South Sathon Road,
Sathon, Bangkok 10120
Thailand
Phone: (66) 2343 3000
Fax: (66) 2287 2973-4
www.UOB.co.th
Wait at Terminal 21
Hong Sek Chern